Profit Margin Calculator
Compute gross profit margin: ((revenue − cost) ÷ revenue) × 100.
Calculator
Use the Profit Margin Calculator
Result
—
Formula
margin % = ((revenue − cost) ÷ revenue) × 100
Step-by-step
- 1
Enter revenue
Total sales amount.
- 2
Enter cost
Total cost of goods/services.
Worked example
Example input: revenue: 1000, cost: 650
Result: 35
Related tools
- Percentage Change
Relative change between values.
Frequently asked questions
What counts as a good profit margin?
It depends entirely on the industry: grocery stores often run 2-5%, manufacturing sits around 10-25%, and software businesses can exceed 70%. Compare against companies in your own field instead of chasing a single universal number. Your own cost base matters most.
How is margin different from markup?
Margin measures profit as a share of the selling price, markup measures it as a share of the cost. The same 10-dollar item sold at 15 shows a 33.3% margin but a 50% markup — one deal, two accounting viewpoints.
Can the margin go above 100%?
No — margin is (price − cost) ÷ price, and profit can never exceed the selling price itself. The only way to approach 100% is a cost near zero, like purely digital products with no per-unit expense.