MarginPro

Profit Margin Calculator

Enter revenue and cost — see your gross profit, profit margin, and markup percentage in one view.

Revenue (price)

Cost of goods sold (COGS)

Revenue → cost → profit

How much of your revenue is eaten by cost before what's left becomes profit.

Gross profit

$380.00

Profit margin

38%

profit ÷ revenue

Markup

61.29%

profit ÷ cost

What you entered

Revenue: $1,000Cost: $620

1
Gross profit
$1,000 − $620= $380
2
Profit margin (profit ÷ revenue)
$380 ÷ $1,000 × 100= 38.00%
3
Markup (profit ÷ cost)
$380 ÷ $620 × 100= 61.29%

Result

Gross profit: $380.00

On $1,000 of revenue against $620 of cost, gross profit is $380.00 — a 38% margin and a 61.29% markup.

Gross profit, margin and markup at common revenue and cost pairs

Each row takes a selling price and the direct cost behind it, then runs the same three calculations the tool does: gross profit = revenue - cost, margin = profit / revenue, markup = profit / cost. Figures are US dollars per unit or per order.

Revenue (price)	Cost of goods sold	Gross profit	Profit margin	Markup
$12	$9	$3.00	25.00%	33.33%
$20	$18	$2.00	10.00%	11.11%
$50	$35	$15.00	30.00%	42.86%
$100	$60	$40.00	40.00%	66.67%
$150	$75	$75.00	50.00%	100.00%
$200	$80	$120.00	60.00%	150.00%
$500	$150	$350.00	70.00%	233.33%
$1,000	$620	$380.00	38.00%	61.29%
$2,500	$500	$2,000.00	80.00%	400.00%

Margin and markup describe the same dollar of profit against different bases, which is why they never match: at a 50% margin the markup is already 100%. These are gross figures only. Cost of goods sold covers direct costs such as materials, manufacturing and inbound freight, not rent, salaries, advertising or payment processing, so your net margin will be lower than every number in this table. Scale the rows freely, since the two percentages depend only on the ratio of cost to revenue: $50 against $35 gives the same 30.00% margin as $500 against $350.

Margin vs. markup

Margin = profit ÷ revenue. Markup = profit ÷ cost. A 50% markup is only a 33% margin — they are not the same number.

Frequently asked questions

I sell a product for $150 that costs me $90 to make — what's my profit margin?

Profit = $150 − $90 = $60. Margin = $60 / $150 = 40%. Markup = $60 / $90 = 66.7%. The margin (40%) is the percentage of your selling price that's profit; the markup (66.7%) is how much you added on top of cost.

What's a good profit margin for a small business?

It varies wildly by industry. Grocery stores run on 1-3% net margins; software companies can exceed 80% gross margins. A 'healthy' net margin for most small businesses is 10-20%. Use this tool to check where you stand, then compare against your industry benchmarks.

How is margin different from markup?

Both measure profitability but with different denominators. Margin = profit ÷ revenue (percentage of price that's profit). Markup = profit ÷ cost (percentage added to cost). A 100% markup equals a 50% margin. The markup calculator shows the inverse calculation — starting from cost to find price.