Profit Margin Calculator
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Calculate gross profit margin, net profit margin, and markup — from revenue and cost, or work backwards from a target margin to find the required selling price.
Profit Margin Calculator · analyze gross margins, markups, cost and revenue ratios · client-side
Input the selling price (revenue) and the cost of goods or services.
Gross profit, gross margin percentage, markup percentage, and cost-to-revenue ratio are calculated instantly.
Enter a cost and a target margin percentage to find the required selling price.
Profit margin is calculated as a percentage of the selling price: Margin = (Revenue − Cost) / Revenue × 100. Markup is calculated as a percentage of the cost: Markup = (Revenue − Cost) / Cost × 100. A product bought for £60 and sold for £100 has a 40% profit margin and a 66.7% markup. These two figures are frequently confused — always specify which you mean when discussing pricing.
This varies significantly by industry. Grocery retail operates on 2–4% net margins. SaaS software companies target 70%+ gross margins. Professional services typically aim for 20–40% net margins. There is no universal “good” margin — benchmark against your specific industry.
Use the reverse calculator mode. Enter the cost and your target gross margin percentage, and the tool calculates the required selling price: Selling Price = Cost / (1 − Target Margin%). Example: cost £60, target 40% margin → Price = 60 / 0.60 = £100.
No. All calculations run in your browser. No data is transmitted.
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Margin and markup are the two most commonly confused terms in pricing — and using one when you mean the other leads to systematic pricing errors. This calculator makes both explicit simultaneously: enter a cost and revenue and see both the margin (as a percentage of revenue) and the markup (as a percentage of cost) side by side. The reverse mode is particularly practical for pricing work: specify your cost and your target margin, and get the minimum selling price required to achieve it. This takes the guesswork out of pricing decisions and ensures you’re not systematically underpricing by confusing the two calculations.
All calculations run in your browser. No data is transmitted to any server.