Profit Margin
Calculator
Calculate gross profit margin, net profit, or revenue. Results as you type.
Profit Margin from Revenue & Cost
Revenue
Cost
40%
Revenue Needed for Target Margin
Cost
Target margin
%
$100
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Frequently asked questions
How do I calculate profit margin?
Profit margin = (Revenue − Cost) ÷ Revenue × 100. Example: $100 revenue, $60 cost → ($100−$60) ÷ $100 × 100 = 40% margin.
What is a good profit margin?
It depends on the industry. Retail averages 2–5%, restaurants 3–9%, SaaS can be 70–80%+. Generally, above 20% is considered strong for most businesses.
What is the difference between profit margin and markup?
Margin is profit divided by revenue. Markup is profit divided by cost. A 40% margin ≠ 40% markup. For a $60 cost item sold at $100: margin is 40%, markup is 66.7%.
How do I find the revenue needed for a target margin?
Revenue = Cost ÷ (1 − margin/100). Example: $60 cost, 40% target → 60 ÷ 0.60 = $100 revenue needed. Use calculator #2 above.