Margin Calculator
Calculate profit margin percentage
Calculator
How to Use
Calculate profit margin
Enter revenue or price
Input selling price or total revenue
Enter cost
Input cost of goods or cost price
Calculate margin
See margin percentage and profit amount
Compare with markup
See equivalent markup percentage
Margin Formula
Margin% = (Revenue - Cost) / Revenue × 100 Profit = Revenue × Margin%
Margin shows what percentage of each sale is profit. Based on selling price, not cost.
Frequently Asked Questions
Profit margin is profit as a percentage of revenue. Gross margin = (Revenue - COGS) / Revenue. Net margin = (Revenue - All Expenses) / Revenue. A 20% margin means $0.20 profit per $1 of sales.
Margin = (Price - Cost) / Price × 100. Selling for $100 with $60 cost: (100-60)/100 = 40% margin. This is gross margin; net margin subtracts additional expenses.
Varies by industry. Software: 70-90%. Retail: 3-10%. Manufacturing: 5-15%. Services: 15-30%. Higher margins indicate competitive advantage or premium pricing. Compare to industry benchmarks, not arbitrary standards.
Gross margin only subtracts direct costs (COGS). Net margin subtracts all expenses (operating, taxes, interest). A business might have 40% gross margin but 5% net margin after overhead, marketing, and taxes.