Profit Margin Calculator

About Profit Margin

Profit margin is a financial metric used to assess a company's profitability. It represents what percentage of sales has turned into profits.

• Gross Profit Margin: Percentage of revenue remaining after deducting cost of goods sold
• Net Profit Margin: Percentage of revenue remaining after all expenses, taxes, and costs
• Markup: Percentage added to the cost price to determine selling price

How to Use This Calculator

1. Enter the cost of your product or service
2. Enter the selling price or revenue
3. Optionally add operating expenses for net profit calculation
4. Click "Calculate Profit Margin" to see results
5. Adjust values to find optimal pricing strategy

Industry Benchmarks

Typical profit margins vary by industry:

• Retail: 2-5% net margin
• Restaurants: 3-5% net margin
• Software: 15-25% net margin
• Manufacturing: 5-10% net margin
• Consulting: 10-20% net margin