Calculate profit margin, markup percentage, and gross profit instantly for smarter pricing decisions.
Enter cost and selling price to find profit, margin, and markup.
Profit margin measures how much of each dollar of revenue becomes profit. It's essential for pricing decisions, competitive analysis, and financial health monitoring. Understanding the difference between margin and markup helps you price products effectively.
Profit as a percentage of selling price:
Profit as a percentage of cost price:
Example: Buy for $60, sell for $100.
Profit = $40
Margin = ($40 ÷ $100) × 100 = 40%
Markup = ($40 ÷ $60) × 100 = 66.67%
It depends on your industry. A 5% net margin is excellent for grocery but poor for software. Research your industry benchmarks.
Raise prices if the market allows, reduce costs through better supplier negotiations, improve efficiency, or focus on higher-margin products.