Profit Margin Calculator

Margin is profit as a percentage of revenue (selling price), while markup is profit as a percentage of cost. A 50% markup on a $10 item means selling at $15, but the margin is 33.3% ($5 profit ÷ $15 revenue).

Good profit margins vary by industry. Retail typically sees 2-5% net margins, software companies 15-25%, and service businesses 10-20%. A margin above your industry average is generally considered healthy.

Profit margin = ((Revenue - Cost) ÷ Revenue) × 100. For example, if you sell a product for $100 that costs $60 to make, your profit margin is 40% (($100 - $60) ÷ $100 × 100).