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Margin Calculator

Calculate gross margin, profit, and markup percentage from cost and revenue.

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Profit Margin vs Markup — Understanding the Difference

Margin and markup both describe profitability, but they're calculated differently and are often confused. Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A product that costs $60 and sells for $100 has a 40% margin (40 ÷ 100) but a 66.7% markup (40 ÷ 60).

Typical Profit Margins by Industry

Frequently Asked Questions

What is a good profit margin?

It depends heavily on industry. A 10% net margin is considered good for most businesses. Software companies often achieve 20–30%+ net margins. Grocery stores operate on under 3% net margins. Compare your margin against industry benchmarks rather than a universal number.

What is the difference between gross and net margin?

Gross margin subtracts only the direct cost of goods sold (COGS) from revenue. Net margin subtracts all expenses — COGS, operating expenses, taxes, and interest. Gross margin tells you production efficiency; net margin tells you overall business profitability.