SuperCalc

Profit Margin Calculator

Calculate profit margin, markup percentage, and selling price from cost. Switch between margin and markup modes. See your profit instantly.

Profit Margin Calculator

Calculate profit margin, markup, and revenue from cost.

Cost$60.00
Revenue$100.00
Profit$40.00
Profit Margin
40.00%
profit / revenue
Markup
66.67%
profit / cost
Common Margins

How it works

Profit Margin = (Revenue − Cost) ÷ Revenue × 100. This tells you what percentage of every dollar you keep. A 40% margin on $100 revenue means $40 profit.

Markup = (Revenue − Cost) ÷ Cost × 100. This tells you how much you added on top of cost. A 66.7% markup on $60 cost means a $40 profit ($100 selling price).

The two metrics describe the same profit from different perspectives. Margin is always less than markup for the same transaction. Use margin when thinking about revenue; use markup when setting prices from cost.

FAQ

What is profit margin?
Profit margin is the percentage of revenue that remains as profit after subtracting costs. Formula: Margin = (Revenue − Cost) ÷ Revenue × 100. A 40% margin means you keep $0.40 of every dollar of revenue.
What is the difference between margin and markup?
Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. For the same transaction: if cost is $60 and revenue is $100, margin is 40% ($40/$100) but markup is 66.7% ($40/$60). Margin is always lower than markup.
How do I convert between margin and markup?
Margin to Markup: Markup = Margin ÷ (1 − Margin). Markup to Margin: Margin = Markup ÷ (1 + Markup). For example, 25% margin = 33.3% markup. 50% markup = 33.3% margin.
What is a good profit margin?
It varies by industry. Net margins: Software/SaaS: 20-40%. Retail: 2-5%. Restaurants: 3-9%. Consulting: 15-25%. Manufacturing: 5-10%. Gross margins are higher. Compare to your industry average rather than using a universal benchmark.
How do I calculate the selling price from cost and margin?
Selling Price = Cost ÷ (1 − Margin/100). For a $60 item with 40% margin: $60 ÷ (1 − 0.40) = $60 ÷ 0.60 = $100. The profit is $40.

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