Profit Calculator

Calculate profit margin, markup, and profitability for your products

Profit Analysis

Gross Profit
$40.00
Profit Margin
40%
Markup
66.7%
Profit Margin
Total Revenue: $100.00
Total Cost: $60.00

Understanding Profit Metrics

📊 Profit Margin

Profit as a percentage of revenue

Margin = (Revenue - Cost) / Revenue × 100

📈 Markup

Profit as a percentage of cost

Markup = (Revenue - Cost) / Cost × 100

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Frequently Asked Questions

What is profit margin?

Profit margin is the percentage of revenue that remains as profit after all costs are deducted. It shows how much of each dollar in sales your business keeps as profit.

What's the difference between gross and net profit?

Gross profit is revenue minus cost of goods sold (COGS). Net profit is what remains after ALL expenses (including operating costs, taxes, interest) are deducted.

What is a good profit margin?

A good profit margin varies by industry. Generally, 5% is low, 10% is average, and 20%+ is considered excellent. Service businesses often have higher margins than retail.

How do I improve my profit margin?

You can improve margins by increasing prices, reducing costs, improving efficiency, or focusing on higher-margin products/services.

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