Profit Margin Calculator
Calculate gross profit margin from revenue and cost, with markup shown alongside.
Profit margin
40%
Breakdown
- Gross profit
- $40,000
- Equivalent markup
- 66.67%
Last updated:
FAQ
What is gross profit margin?
The share of revenue left after paying the direct costs of what you sold — a core health metric for any business.
What is a good margin?
It depends on the industry: software often exceeds 70%, restaurants may run 5–15%. Compare against peers, not a universal number.
Why does the same deal look better as markup?
Markup uses the smaller cost as its base, so the identical profit always shows a bigger markup percentage than margin.
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