Profit Margin Calculator

Margin and markup both measure profit but use different bases. Margin is profit as a percentage of the selling price (e.g., $20 profit on a $100 sale = 20% margin). Markup is profit as a percentage of cost (e.g., $20 profit on $80 cost = 25% markup). The same profit amount will always show a higher markup % than margin %.

To convert markup to margin: Margin = Markup / (1 + Markup). For example, a 50% markup equals 50 / 150 = 33.3% margin. Our calculator does this conversion automatically - just enter your cost and either value to see the other.

Profit margins vary widely by industry. Retail typically sees 2-5% net margins, restaurants 3-9%, professional services 15-30%, and software/SaaS can exceed 70%. Consider your industry averages, overhead costs, and competitive pricing when setting margins.

Yes, our profit margin calculator is completely free with no limits. Calculate as many margins as you need without signing up or paying anything. Use it for single items or multiple products at once.

Yes! Switch to "Multiple Items" mode to add multiple products or services. Enter the cost and desired margin for each item, and the calculator will show individual results plus totals for cost, revenue, profit, and average margin.

Enter your total cost to provide the service (labor, materials, overhead). Then set your desired margin or markup to see what you should charge. For service businesses, factor in your time at a fair hourly rate as part of the cost.