Enter your revenue and cost to instantly see gross margin, net margin, markup %, and more. Works for any product, service, or business size.
Fill in your revenue and cost on the left and click Calculate to see your profit margin breakdown.
Profit margin tells you what portion of each sale you actually keep as profit. It is expressed as a percentage of revenue. A 50% gross margin means for every $100 in sales, $50 goes to covering your costs and $50 is left over before other expenses. To calculate this quickly for any product, use our gross profit calculator.
There are three main types: gross margin (revenue minus direct production costs), operating margin (also subtracts operating expenses like rent and salaries), and net margin (what is left after everything — including taxes). For a full bottom-line picture, our net profit calculator walks you through every deduction from revenue to final take-home profit. For businesses with variable costs, the contribution margin calculator shows how much each unit sold actually contributes toward covering your fixed costs.
Understanding your margin helps you price products correctly, compare performance across periods, and know if your business model is actually sustainable. If you invest on margin through a brokerage, the margin interest calculator helps you see how much borrowing costs are eating into your returns.
The key formulas you need:
Example: Revenue = $10,000. COGS = $6,000. Gross Profit = $4,000. Gross Margin = 40%. Markup = 66.7%.
Many business owners confuse margin and markup. They look similar but are calculated differently and can lead to big pricing mistakes if mixed up.
| Item Costs | Selling Price | Gross Margin % | Markup % |
|---|---|---|---|
| $50 | $100 | 50.0% | 100.0% |
| $60 | $100 | 40.0% | 66.7% |
| $75 | $100 | 25.0% | 33.3% |
| $80 | $100 | 20.0% | 25.0% |
| $90 | $100 | 10.0% | 11.1% |
Margin is always lower than markup for the same product. Margin uses selling price as the base; markup uses cost as the base.
Margin expectations vary a lot depending on the business type. Compare your numbers to these common ranges:
| Industry | Typical Gross Margin | Typical Net Margin |
|---|---|---|
| Software / SaaS | 65–80% | 15–30% |
| Consulting / Services | 55–70% | 15–25% |
| Finance / Insurance | 70–85% | 18–28% |
| Healthcare | 40–60% | 8–15% |
| E-commerce | 35–50% | 3–8% |
| Retail | 25–45% | 2–5% |
| Restaurant / Food | 60–70% | 3–9% |
| Manufacturing | 20–35% | 5–12% |
| Construction | 15–25% | 2–6% |
| Wholesale | 15–25% | 1–4% |
Shows gross profit in $ for combinations of revenue and margin percentage.
| Revenue $ | 10% Margin | 20% Margin | 30% Margin | 40% Margin common target | 50% Margin | 60% Margin |
|---|
Given your cost and a target gross margin, shows the required selling price. Formula: Price = Cost ÷ (1 − Margin).
| Cost $ | 20% Margin | 30% Margin | 40% Margin popular target | 50% Margin | 60% Margin | 70% Margin |
|---|
Many retailers set prices using markup. This table shows the equivalent gross margin for each markup percentage.
| Markup % | Gross Margin % | Cost $100 → Selling Price | Profit on $100 Cost |
|---|
Break-Even Revenue = Fixed Costs ÷ Gross Margin %. Shows how much revenue you need to cover fixed costs.
| Fixed Costs $ | 20% Margin | 30% Margin | 40% Margin | 50% Margin | 60% Margin best case |
|---|
Average profit margins vary widely by sector. Use these figures to see where your business stands.
| Industry | Avg Gross Margin | Avg Net Margin | Key Driver |
|---|---|---|---|
| Software / SaaS | 72% | 25% | Low COGS, recurring revenue |
| Finance & Insurance | 80% | 22% | Interest income, fees |
| Consulting / Services | 60% | 20% | Low material cost |
| Healthcare | 48% | 10% | High labor, regulation |
| E-commerce | 42% | 5% | Shipping, returns |
| Restaurant / Food | 65% | 6% | High labor & overhead |
| Retail — General | 35% | 3.5% | High volume, competition |
| Manufacturing | 28% | 8% | Raw materials, labor |
| Construction | 20% | 5% | Materials, subcontractors |
| Wholesale / Distribution | 22% | 2.5% | Thin spreads, volume |
| Automotive Dealers | 15% | 2% | High cost inventory |
| Grocery / Supermarket | 25% | 1.5% | Extreme competition |