Profit Margin Calculator

Overview

Calculate gross margin, net margin, and markup. Compare your margins to industry benchmarks and get pricing recommendations.

Key Facts

Inputs

How to Use

1. Enter Revenue & COGS — Input total revenue and cost of goods sold (direct production costs only)
2. Add Operating Expenses — Enter all business expenses (rent, salaries, marketing, utilities, etc.)
3. View Margins & Analysis — See gross margin, net margin, markup, and comparison to industry benchmarks

Result Surfaces

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FAQ

What is the difference between gross margin and net margin?

Gross margin = (Revenue - COGS) / Revenue. It shows production efficiency. Net margin = (Revenue - All Costs) / Revenue. It shows overall profitability after operating expenses. Gross margin is always higher than net margin.

What is the difference between margin and markup?

Same profit dollars, different calculation. Margin = profit / revenue (e.g., $40 profit on $100 sale = 40% margin). Markup = profit / cost (e.g., $40 profit on $60 cost = 66.7% markup). Margin is always lower than markup for the same transaction.

What is a good profit margin?

It varies by industry. SaaS: 70-90% gross, 10-30% net. Retail: 25-50% gross, 2-10% net. Restaurants: 60-70% gross, 3-10% net. Consulting: 60-80% gross, 15-30% net. Compare to your industry benchmarks.

Evidence

• src/lib/calculators/registry.ts (metadata)
• src/lib/calculators/page-registry.ts (page/HowTo metadata)
• src/lib/calculators/business/profit-margin.ts (calculator config)