Profit Margin Calculator
Calculate gross, operating, and net profit margins for your business pricing strategy.
Profit Margin Calculator
Profit & Margin
Calculate margins, markup, and profitability
Margin Analysis
Industry Benchmarks
How your margins compare.
Smart Insights
Personalized takeaways from your numbers.
Real-Life Examples
Cost ₹700 · Sell ₹1000
The Formula Behind It
Profit Margin = (Revenue - Cost) / Revenue × 100Variables
- Margin = (Revenue − Cost) / Revenue × 100
About Profit Margin Calculator
Calculate gross, operating, and net profit margins for your business pricing strategy.
Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that remains as profit after deducting costs.
What is a good profit margin?
Varies by industry. 10-20% net margin is healthy for many businesses. Tech companies often have higher margins.
What is gross vs net profit margin?
Gross margin uses only COGS. Net margin accounts for all expenses including operating costs, taxes, and interest.
How to calculate markup vs margin?
Margin = (Price - Cost) / Price. Markup = (Price - Cost) / Cost. A 25% margin equals 33.3% markup.
How to improve profit margins?
Reduce costs, increase prices strategically, improve efficiency, and focus on high-margin products.
What is operating profit margin?
Operating margin = Operating Income / Revenue × 100, excluding taxes and interest.
Can profit margin exceed 100%?
Margin cannot exceed 100% (that would mean cost is negative). Markup can exceed 100%.
How does discounting affect margins?
Small discounts significantly reduce margins. A 10% price cut on 30% margin product reduces margin to about 18%.
What industries have highest margins?
Software, pharmaceuticals, luxury goods, and financial services typically have high profit margins.
Should I focus on margin or volume?
Balance both. High volume with thin margins can be profitable, but ensure cash flow covers operating costs.
Community Stories
Real experiences from people like you.
"Raised prices 8% after margin analysis."
Profit up 22% same volume