Profit Margin Calculator
Calculate gross profit margin, markup percentage, and net profit revenue in seconds.
Calculate your business profitability with ease. Input your product cost and selling price to find your gross profit margin percentage, markup percentage, and dollar profit per unit sold.
About Profit Margin Calculator
Confusing profit margin with markup is one of the most common pricing mistakes small business owners make. Profit Margin Calculator clarifies the distinction instantly so you can price products profitably and sustainably.
How to Use Profit Margin Calculator
- Enter product cost: Input your cost of goods sold (COGS) or production cost.
- Enter selling price or margin: Input your target retail selling price or desired margin percentage.
- Review margin metrics: See gross profit dollars, profit margin %, and markup %.
- Optimize product pricing: Fine-tune values to meet your target business return.
Key Features
- Gross profit margin percentage calculation
- Markup percentage calculation
- Net dollar profit per unit
- Reverse price calculation based on target margin
- 100% private
Common Use Cases
- Pricing retail inventory and e-commerce merchandise for profitability.
- Evaluating wholesale discount proposals from suppliers.
- Checking profitability on restaurant food menu items.
Formula & Calculation Logic
Profit = Revenue - Cost. Profit Margin (%) = (Profit / Revenue) × 100. Markup (%) = (Profit / Cost) × 100.
Frequently Asked Questions
What is the formula for profit margin?
Profit Margin = ((Revenue - Cost) / Revenue) × 100. Profit margin is always expressed as a percentage of the selling price.
What is the difference between margin and markup?
Margin is profit divided by selling price (never exceeds 100%). Markup is profit divided by cost of goods (can exceed 100%).
What is a good gross profit margin for a small business?
While margins vary by industry, a 50% to 60% gross margin is common in retail and manufacturing, while service businesses often aim for 60% to 80%.
How does discounting affect my profit margin?
A discount directly reduces gross profit dollar-for-dollar; for instance, offering a 10% discount on a 30% margin product slashes your net profit by one-third.
Privacy Guarantee
All margin calculations occur locally in your browser. No financial figures are logged.
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