SnapCalc

Profit Margin Calculator

Calculate gross profit margin, net profit margin, markup percentage, and selling price from cost.

$
$
%

Used when calculating selling price or cost

$

For net margin calculation

How to Use

  • Margin from Cost & Revenue: Enter cost and selling price to calculate your margin and markup
  • Selling Price from Margin: Enter cost and target margin to find the right price
  • Cost from Price & Margin: Enter a price point and desired margin to find maximum allowable cost

    • Margin vs Markup: Margin is profit as a % of revenue. Markup is profit as a % of cost. A 50% markup = 33% margin.

    Formula

    Gross Margin = (Revenue − Cost) ÷ Revenue × 100 | Markup = (Revenue − Cost) ÷ Cost × 100

    Frequently Asked Questions

    What is a good profit margin?

    It varies by industry. Retail: 2–5%. Software/SaaS: 60–80%. Services: 20–40%. Manufacturing: 5–15%. Compare to your industry benchmark.

    What's the difference between margin and markup?

    Margin is profit divided by selling price. Markup is profit divided by cost. A $60 cost sold for $100: margin is 40%, markup is 67%. Always specify which you mean.

    How do I price for a 50% gross margin?

    Divide cost by 0.5. A $50 cost needs a $100 selling price for 50% margin. Alternatively: Cost ÷ (1 − margin %).

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