Enter Your Numbers
Quick Start Pre-fill example numbers
Revenue (Selling Price) Total sales
$
Cost of Goods Sold (COGS) Direct costs
$
Units Sold Optional — for per-unit data
Your Industry For benchmark comparison
Gross Profit Margin
40.00%
Profit: $40,000 on $100,000 revenue
Strong performer — your business model is working.
Your margin beats Nike (12%) but is below Microsoft (36%).
Key Metrics
Gross Profit
$40,000
Markup
66.7%
Cost Ratio
60.0%
Full Breakdown
| Revenue | $100,000.00 |
| Cost of Goods Sold | $60,000.00 |
| Gross Profit | $40,000.00 |
| Gross Margin | 40.00% |
| Markup Percentage | 66.67% |
Revenue Breakdown
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Margin Comparison
Industry Benchmark
What If Your Price Changes?
Shows how your margin changes if you raise or lower prices by up to 30%
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Formulas Used
Gross Margin = (Revenue − COGS) ÷ Revenue × 100
Net Margin = (Revenue − COGS − OpEx − Tax) ÷ Revenue × 100
Markup = (Revenue − COGS) ÷ COGS × 100
Break-Even Units = Fixed Costs ÷ (Price − Variable Cost)
Margin measures profit as a % of revenue. Markup measures profit as a % of cost. A 50% markup = 33.3% margin.
Frequently Asked Questions
What is a good profit margin?
It depends on your industry. A 5% net margin is considered low, 10% is healthy, and 20%+ is excellent. Software companies average 72% gross margins, while restaurants typically operate at 3-9%. Use our industry benchmark tool above to compare your specific margin.
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. Example: If you buy for $60 and sell for $100, your margin is 40% ($40/$100) but your markup is 66.7% ($40/$60). They describe the same profit from different angles. Use our Markup Calculator to convert between them.
How do I calculate profit margin?
Profit Margin = (Revenue − Cost of Goods Sold) ÷ Revenue × 100. For example: Revenue=$100, COGS=$60 → Profit=$40 → Margin = $40÷$100 = 40%. This calculator does it instantly — just enter your numbers above.
What is gross margin vs net margin?
Gross margin only subtracts direct costs (COGS). Net margin subtracts EVERYTHING — operating expenses, taxes, interest, depreciation. Gross margin shows product profitability; net margin shows true business profitability. Switch to "Full P&L" mode above to see both.
How can I improve my profit margin?
Three levers: (1) Raise prices — even 5% increases margin significantly. (2) Reduce COGS — negotiate with suppliers, find alternatives, reduce waste. (3) Cut operating expenses — automate, outsource, optimize. Use our "What If" chart above to see how price changes impact your margin.
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