Business
Profit Margin Calculator
Calculate gross profit margin from revenue and cost, and see the markup that produces it.
Result
Whether this is gross or net margin depends on what you put in the cost field. Direct costs only gives gross margin; adding overhead and admin gives net.
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About this calculator
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. The same job is a 33% margin and a 50% markup. Confusing them is the most common cause of under-pricing.
What is a good profit margin?
It varies enormously by industry. What matters more is whether the margin covers your overhead and leaves a return, the break-even calculator answers that for your specific business.
Why did my margin fall when revenue grew?
Usually because the extra revenue came from lower-margin work, or because costs rose faster than prices. Track margin by job type rather than as one company-wide average.
The formula
margin = (revenue − cost) ÷ revenue × 100
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