Profit Margin Calculator

Both margin and markup measure profit, but they use different bases. Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. For the same dollar profit, the markup percentage will always be higher than the margin percentage.

Use the formula: Margin = Markup ÷ (1 + Markup). For example, a 50% markup gives you 50 ÷ 150 = 33.3% margin. The calculator does this conversion automatically—just enter your cost and one value, and the other will update in real time.

Profit margins vary widely by industry. Retail often operates on net margins of 2–5%, restaurants around 3–9%, professional services 15–30%, and software/SaaS companies can exceed 70%. Research your industry benchmarks and factor in your overhead costs and competitive pricing when setting a target.

Yes. The profit margin calculator is completely free. You can calculate margins for as many items as you need without signing up or paying anything.

Yes. Switch to Multiple Items mode to add products or services individually. Enter the cost and target margin or markup for each item, and the calculator will display per-item results along with totals for cost, revenue, profit, and average margin.

Enter your total cost to deliver the service, including labor, materials, and overhead. Then set your desired margin or markup to see the selling price you should charge. For service businesses, factor in your time at a fair hourly rate as part of the cost.

Gross margin is calculated using only the direct cost of the product or service. Net margin factors in all other expenses, like rent, salaries, marketing, and taxes. This calculator focuses on gross margin—you'll need to account for additional overhead separately when assessing overall profitability.

Yes. In Multiple Items mode, use the "Apply to All" feature to set the same margin or markup percentage across all items at once. This is useful when pricing a catalog of products with consistent profit targets.

A common reason is confusing margin with markup. If you expect a 50% margin but enter a 50% markup, your margin will only be 33.3%. Make sure you're using the correct input mode for your goal. The calculator clearly labels both so you can see the difference.

Yes. Your inputs are saved locally in your browser so they persist between visits. Nothing is uploaded to a server. If you clear your browser data, your saved values will be erased.