Profit Margin Calculator

Calculate profit margin, markup, and pricing instantly

Profit Margin

40.00%

of selling price

Markup

66.67%

of cost price

Revenue Breakdown

Cost: $60
Profit: $40

Margin vs Markup: What's the Difference?

Profit Margin

Percentage of selling price that is profit.

Margin = (Profit ÷ Revenue) × 100

Markup

Percentage added to cost price to get selling price.

Markup = (Profit ÷ Cost) × 100

Calculation Summary

Cost$60
Revenue$100
Gross Profit$40

Industry Benchmarks

Software/SaaS70-90%
Consulting50-80%
E-commerce20-40%
Restaurants3-9%
Retail2-5%
Grocery1-3%

💡 Pro Tips

  • • A 50% markup ≠ 50% margin (it's ~33% margin)
  • • Track both metrics for complete pricing insight
  • • Consider all costs including overhead