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💰 Business Tool

Profit Margin
Calculator

Calculate your gross profit margin, net profit, and markup percentage instantly. Know your numbers, grow your business.

📊 Revenue
Price you charge customers
💸 Costs
What it costs you to make/buy
Shipping, fees, overhead, etc.
📈 Your Profit Breakdown
Revenue
$100
Total Cost
$60
Gross Profit
$40
Profit Margin
40%
40%
Markup %
66.7%
Profit Per Unit
$40
💡 Industry Benchmark: A healthy profit margin varies by industry — retail typically sees 5-10%, SaaS 70-90%, and services 15-30%. If your margin is below your industry average, look for ways to reduce costs or increase your selling price.
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Why Profit Margin Matters More Than Revenue

Revenue is vanity, profit is sanity. You can sell a million dollars worth of product and still lose money if your margins are too thin. Profit margin tells you what percentage of every dollar you actually keep after covering your costs — and it is the single most important number in any business.

This calculator shows you four key metrics: total revenue, total cost, gross profit in dollars, and profit margin as a percentage. It also calculates your markup percentage, which is different from margin. Margin is profit divided by revenue. Markup is profit divided by cost. A 50% margin means you keep half of every dollar. A 50% markup means you charge 50% more than your cost. They sound similar but produce very different numbers.

Healthy profit margins vary significantly by industry. Retail businesses typically operate on 5-10% margins. Service businesses usually hit 15-30%. Software and digital products can reach 70-90%. If your margin is below your industry average, look for ways to either reduce your costs or increase your selling price.