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Profit Margin
Ensure your pricing is profitable. Calculate Gross Profit Margin and Net Profit Margin instantly.
Last Updated: March 1, 2025
# What is Profit Margin?
A Profit Margin Calculator measures the profitability of a product or business service, expressed as a percentage of revenue.
# How Does Profit Margin Work?
- 1Enter the Cost of Goods Sold (COGS).
- 2Enter the Selling Price (Revenue).
- 3The tool calculates the Profit Margin percentage.
- 4Switch to 'Net Margin' to include operating expenses.
# Formula Used
`Margin % = ((Revenue - Cost) / Revenue) * 100`# Common Use Cases
Checking profitability of individual products.
Quarterly financial reporting.
Comparing against industry benchmarks.
# Why Use This Tool?
Markup vs Margin: See both metrics side-by-side.
Visual Indicator: Color-coded health check.
Instant Feedback: Optimize your prices live.
Trusted & Secure
• Calculations are performed entirely in your browser.
• No signup, no data storage, no tracking.
• Formulas based on standard financial principles.
# Frequently Asked Questions
What is the difference between Margin and Markup?▼
Margin is profit as a % of Revenue. Markup is profit as a % of cost. Margin is always lower than Markup.
What is a good profit margin?▼
It varies widely by industry, but generally a net margin of 10% is considered average, and 20% is considered high.
How can I increase my margin?▼
You can increase margin by raising prices (if the market allows) or reducing costs (COGS).
Last updated: March 2025 • v2.1.0 • Secure Client-Side Processing