Business 4.8 · 53K/mo
Profit Margin Calculator
Calculate gross profit, net profit, and margin percentage from revenue and cost.
Understanding Profit Margins
Profit margin is a key indicator of business health. Gross margin shows how efficiently you produce goods. Operating margin shows how well you manage operating expenses. Net margin shows the bottom line after all costs. Tracking margins over time helps identify trends and areas for improvement. Compare your margins to industry benchmarks to understand your competitive position.
Frequently Asked Questions
What is a good profit margin?
It varies by industry. Retail: 2-5%, Software: 60-80%, Restaurants: 3-9%. Compare to industry benchmarks for context.
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of revenue. A 50% markup equals a 33% margin.