Profit Margin Calculator
See how much of every sale you actually keep. Enter your revenue (selling price) and your cost, and this calculator shows your gross profit, profit margin, and markup.
Enter your revenue and cost to see your margin
Margin vs. markup — they are not the same
Profit margin is your profit as a percentage of the selling price. Markup is your profit as a percentage of the cost. If something costs $60 and you sell it for $100, your profit is $40 — that is a 40% margin but a 67% markup. People mix these up constantly, and the mistake quietly destroys pricing decisions, so it is worth being precise.
What counts as a good margin
It depends entirely on the business. Grocery and hardware retail can run on single-digit margins because they move huge volume. Software often runs at 80% or more because the cost of one more copy is almost nothing. Restaurants, agencies, and physical products usually land somewhere in between. Compare yourself to others in your category, not to an absolute.
Why margin decides whether you can grow
Margin is the money left to pay for marketing, salaries, rent, and reinvestment. A thin margin means you need enormous volume to fund growth, and a single bad month can wipe you out. Knowing your margin before you launch tells you whether the price you plan to charge can actually support the business you want to build.
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