Free tools / Profit Margin Calculator
Work out your profit margin
Gross and net margin on your numbers, and the price that would reach the margin you want.
The full read
These numbers are only as good as the idea underneath them. Pressure-test the whole thing: market sizing from real sources, the risks that could kill it, and a 2-week test plan.
Signing in also gets you the exact places your first customers are with who to reach, a new first-customer play every week, and follow-up questions saved in your workspace.
1 free analysis a month, no card.
Revenue and costs in, your margin and markup out.
Your profit margin is the share of revenue you actually keep after costs. Enter two numbers to get your margin, your profit, and the markup that goes with it.
Profit margin = (revenue − costs) ÷ revenue, as a percentage. It's the slice of each sale you keep, and it's the number that decides whether volume is worth chasing.
Margin and markup are not the same thing, and confusing them costs real money. Markup is profit over cost; margin is profit over revenue. A 50% markup is only a 33% margin.
What counts as a healthy margin depends entirely on the business (software runs high, retail and food run thin), so compare against your own industry, not a universal number.
Want proof it’s not made up? See real ideas run through this tool: the buyer, the spots, and the opener actually sent.
Questions
3 answeredHow do I calculate profit margin?
Subtract your costs from your revenue, then divide by revenue and multiply by 100. That's your net profit margin as a percentage. Enter revenue and total costs above to get it, plus your profit and markup, instantly.
What is the difference between margin and markup?
Markup is profit as a percentage of cost; margin is profit as a percentage of revenue. They're always different: a 50% markup is a 33% margin. Pricing off the wrong one is a common way to under-earn without realising it.
What is a good profit margin?
It depends entirely on the industry. Software and digital products can run 70%+, while retail, food, and hardware often sit in single digits. Compare your margin to others in your specific space, not a single universal benchmark.
The guide behind this tool
How to calculate profit margin
Calculate profit margin by dividing profit by revenue, not by cost. Here is the formula, why margin and markup differ, and what counts as a healthy number.
Read the guideMore free tools
- Freelance Rate CalculatorThe income you want plus expenses, divided by the hours you can actually bill.
- Pre-Money / Post-Money CalculatorPre-money plus the raise gives post-money, and the share you give up.
- Subreddit Promotion CheckerCheck the door before you knock. Posting and commenting are different rules.
- Idea ValidatorAn honest score on your idea. It'll tell you to kill it if it deserves it.
- Roast My IdeaPaste your idea. Get a brutally honest roast you can actually share.