Profit Margin Calculator
Net Profit
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Profit Margin
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How to use this calculator
- Enter Cost: Input the total cost to produce or acquire your product/service.
- Enter Revenue: Input the final selling price.
- View Results: The calculator instantly updates your Profit in currency and your Margin as a percentage.
Frequently Asked Questions
What is Profit Margin?
Profit margin is a ratio of a company's profit divided by its revenue. It measures how much of every dollar of sales a company actually keeps in earnings.
What is a good profit margin?
A "good" margin varies by industry. For retail, 20% might be excellent, while for software (SaaS), 80% is common. Generally, a 10% net profit margin is considered average, 20% is considered high, and 5% is low.
What is the difference between markup and margin?
Markup is the percentage of the cost that you add to the cost price to get the selling price. Margin is the percentage of the selling price that is profit.