💰 Profit Margin Calculator

Calculate your profit margins, markup percentage, and net profit in real-time. Understand your business profitability instantly and price your products right.

What you charge customers
Cost to manufacture or produce the product
Shipping, packaging, or delivery expenses per unit
Detailed Mode (includes tax & operating expenses)
Per-product allocation of salaries, rent, utilities, marketing, etc.
Your effective tax rate as a percentage
Gross Profit
Revenue minus product & delivery costs
$0.00
Gross Margin %
Profit as % of selling price (higher is better)
0.00%
Dangerously low
Markup %
Profit as % of what you paid (25% markup = $1.25 for every $1 cost)
0.00%
For every $100 you make, you keep $0.

Understanding Profit Margins

What is Profit Margin?

Profit margin is the percentage of revenue that becomes profit after paying all costs. It shows how much of each dollar earned is actual profit. A 40% profit margin means for every $100 in revenue, $40 is profit.

Higher margins mean more efficient business model, better pricing, or lower costs. Lower margins mean tighter operations and less room for error.

Margin vs Markup (They're Different!)

Profit Margin = (Profit ÷ Revenue) × 100 — Shows profit as % of what you earned

Markup = (Profit ÷ Cost) × 100 — Shows profit as % of what you paid

Example: Product costs $40, you sell for $100

• Profit: $60

• Margin: 60% ($60 ÷ $100)

• Markup: 150% ($60 ÷ $40)

Same profit, different perspectives.

Healthy Margins by Business Type

Business Type
Target Margin
E-commerce / Retail
20-40%
SaaS / Digital Products
60-80%
Freelance / Services
40-60%
Agency / Consulting
50-70%
Physical Products
30-50%

These are general benchmarks. Your margin depends on industry, market, and operational efficiency.