Business

Profit Margin Calculator

Gross and net profit margin.

Profit margin = % of revenue that is profit.

Types

Gross: (Revenue-COGS)/Revenue×100
Net: NetIncome/Revenue×100

Benchmarks

Restaurants: 3-5%. Retail: 25-50%. Software: 70-85%.

Margin vs Markup

Margin=profit/price. Markup=profit/cost. 40%margin=66.7%markup.

Frequently Asked Questions

Good margin?

5%low, 10%avg, 20%high. Industry-dependent.

Increase?

Reduce costs, raise prices, focus on high-margin.

Margin vs markup?

Margin=profit/price. Markup=profit/cost.