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Business
Profit Margin Calculator
Calculate gross profit margin, net profit margin, and markup percentage instantly. Also find selling price from cost + target margin. Free.
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Gross Profit
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Profit Margin
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Markup
Frequently asked
questions
Margin is profit expressed as a percentage of the selling price. Markup is profit expressed as a percentage of the cost. Example: cost $60, price $100 → margin = 40%, markup = 66.7%. Use margin for revenue-based thinking; markup for cost-plus pricing.
It varies widely by industry. Retail: 2–10%. Software/SaaS: 60–80%+. Restaurants: 3–9%. Professional services: 20–40%. Gross margins above 50% are generally considered healthy for most non-commodity businesses.
Selling Price = Cost / (1 − Margin%). Example: cost $60 with a 40% margin target → $60 / (1 − 0.40) = $100.