Profit Margin Calculator
Calculate gross and net profit margin — the percentage of revenue that remains after subtracting costs.
Your Profit Margin
Profit Margin
35.00%
35.00% of revenue remains as profit after costs.
(($10,000 − $6,500) ÷ $10,000) × 100
Gross Profit
$3,500
Markup
53.8%
Revenue
$10,000
Assessment
Healthy margin
Formula
Example Calculation
Revenue $10,000, cost $6,500.
How to Interpret Margin
Compare against industry peers. Software often has 70%+ gross margin; ecommerce 30–50%.
Common Mistakes
- ✕Confusing margin with markup.
- ✕Using gross revenue before discounts.
- ✕Mixing gross and net margin definitions.
Related Calculators
Shopify Profit Calculator
Net Profit = Revenue − Product Cost − Shipping − Fees − Ad Cost
Break-Even ROAS Calculator
Break-Even ROAS = 1 ÷ Gross Margin
Amazon FBA Profit Calculator
Net Profit = Sale Price − Referral Fee − FBA Fee − Product Cost − Shipping
Etsy Fee Calculator
Net Profit = Sale Price − Etsy Fees − Item Cost − Shipping Cost
Frequently Asked Questions
Varies by industry: software 70%+ gross, ecommerce 30–50% gross, retail 20–40%. Net margins are lower after operating expenses. Compare to industry peers and your own historical trend.