Profit Margin Calculator
Calculate gross margin and markup %.
About this tool
The Profit Margin Calculator computes gross profit margin, markup percentage, and net profit from a cost and revenue figure. It's an essential tool for business owners, freelancers, and anyone pricing products or services.
How it works
- Enter the cost of goods sold (COGS) or your total cost to deliver the service.
- Enter the selling price or revenue.
- The calculator instantly shows gross profit, profit margin %, and markup %.
- Adjust price or cost to experiment with different pricing scenarios.
Example use cases
- Product pricing: A product costs $40 to make and sells for $100. The gross margin is 60% and the markup is 150%.
- Freelance rate check: A freelancer charges $150/hour and their effective hourly cost (time + software + taxes) is $80. Their margin is 46.7%.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% markup equals a 33% margin.
What is a good profit margin?
It varies widely by industry. Retail typically runs 20-40% gross margin; software can exceed 70%; restaurants often operate below 10%.