Profit Margin Calculator
Calculate gross margin, net margin, and markup on your products or services. Essential for pricing decisions.
Product/Service Details
$1,000
$1$1,000,000
$1,500
$1$1,000,000
Additional Costs (Optional)
$0
$0$500,000
0%
0%50%
Buying at $1,000 and selling at $1,500
Gross Profit Margin
33.33%
Profit: $500 | Markup: 50.0%
💵Cost Price
$1,000
💰Revenue
$1,500
📈Gross Profit
$500
📊Markup %
50.0%
Profit Breakdown
Revenue$1,500
(-) Cost of Goods$1,000
Gross Profit$500
Net Profit$500
Margin vs Markup
Profit Margin
Profit as a percentage of selling price.
Margin = (Profit / Revenue) x 100
Markup
Profit as a percentage of cost price.
Markup = (Profit / Cost) x 100
Example: A product costs $100 and sells for $150.
Profit = $50 | Margin = 33.3% | Markup = 50%
Pricing Tips
- ✓Gross margin above 50% is generally considered healthy
- ✓Net margin of 10-20% is good for most industries
- ✓Always factor in all costs before setting prices
- ✓Consider competitor pricing and market conditions
- !Higher margin doesn't always mean higher profits
- !Volume and turnover rate matter too