Profit Margin = (Revenue - Cost) / Revenue x 100. Example: you sell a product for 10,000 rupees that costs you 7,000 to make. Profit = 3,000. Profit Margin = (3,000 / 10,000) x 100 = 30%. A 30% profit margin is considered healthy for most businesses.
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💵 Profit Margin Calculator
Calculate gross profit margin, markup percentage, and net profit instantly. Essential for businesses, freelancers, and anyone selling products or services worldwide.
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The 365tool.net Profit Margin Calculator uses standard accounting formulas used by businesses worldwide. Free for entrepreneurs, sellers, and students. No sign-up needed.
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Our Profit Margin Calculator calculates all key profitability metrics:
It depends on the industry. Retail: 2-5% is typical. Software: 60-80%. Services/consulting: 20-40%. Restaurants: 3-9%. For a small business in Sri Lanka, a 20-30% profit margin is generally considered healthy.
What is the difference between margin and markup?▼
Profit margin = profit as a % of selling price. Markup = profit as a % of cost. Example: cost 70, sell 100. Profit = 30. Margin = 30/100 = 30%. Markup = 30/70 = 43%. Same numbers, different bases. Many people confuse these!
How do I calculate a selling price from a desired margin?▼
Selling Price = Cost / (1 - Desired Margin). Example: cost is 700 and you want 30% margin. Sell = 700 / (1 - 0.30) = 700 / 0.70 = 1,000. Our calculator shows this automatically.
What is gross profit vs net profit?▼
Gross profit = Revenue minus direct cost of goods. Net profit = Revenue minus ALL costs (rent, salaries, taxes, etc.). Gross margin shows product profitability. Net margin shows overall business health.
How do I increase my profit margin?▼
Two ways: increase price or decrease cost. Increasing price is usually more powerful — a 10% price increase with the same costs creates much more profit than a 10% cost reduction. Also eliminate low-margin products or services.
It depends on the industry. Retail: 2-5% is typical. Software: 60-80%. Services/consulting: 20-40%. Restaurants: 3-9%. For a small business in Sri Lanka, a 20-30% profit margin is generally considered healthy.
What is the difference between margin and markup?▼
Profit margin = profit as a % of selling price. Markup = profit as a % of cost. Example: cost 70, sell 100. Profit = 30. Margin = 30/100 = 30%. Markup = 30/70 = 43%. Same numbers, different bases. Many people confuse these!
How do I calculate a selling price from a desired margin?▼
Selling Price = Cost / (1 - Desired Margin). Example: cost is 700 and you want 30% margin. Sell = 700 / (1 - 0.30) = 700 / 0.70 = 1,000. Our calculator shows this automatically.
What is gross profit vs net profit?▼
Gross profit = Revenue minus direct cost of goods. Net profit = Revenue minus ALL costs (rent, salaries, taxes, etc.). Gross margin shows product profitability. Net margin shows overall business health.
How do I increase my profit margin?▼
Two ways: increase price or decrease cost. Increasing price is usually more powerful — a 10% price increase with the same costs creates much more profit than a 10% cost reduction. Also eliminate low-margin products or services.