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Profit margin is the single most important number for any business — it tells you how many cents of every dollar in revenue you actually keep. Our profit margin calculator handles all three variants: gross margin (revenue minus cost of goods), operating margin (after overhead), and net margin (after tax). It also works in reverse: give it your cost and target margin and it calculates the selling price you need to charge.

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Margin vs. Markup: What's the Difference?

The most common mistake business owners make is confusing profit margin with markup. While both are used to measure profitability, they are calculated differently and give you different insights.

هامش الربح

Margin is based on your الإيرادات. It tells you how much of every dollar earned is kept as profit.

Margin = (Profit ÷ Revenue) × 100

هامش الربح

Markup is based on your التكلفة. It tells you how much you added to the original cost to get the selling price.

Markup = (Profit ÷ Cost) × 100
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Business

حول Profit Margin Calculator

Profit margin is the single most important number for any business — it tells you how many cents of every dollar in revenue you actually keep. Our profit margin calculator handles all three variants: gross margin (revenue minus cost of goods), operating margin (after overhead), and net margin (after tax). It also works in reverse: give it your cost and target margin and it calculates the selling price you need to charge.

كيفية الاستخدام

  1. Enter revenue (selling price) and cost. See gross profit and margin instantly.
  2. Or enter cost and target margin percentage — the calculator returns the required selling price.
  3. Toggle to markup mode if your pricing starts from a cost-plus markup rather than a margin target.

الصيغة والمنهجية

Gross profit = Revenue − COGS. Gross margin % = (Gross profit / Revenue) × 100. Markup % = (Gross profit / COGS) × 100. Note: a 50% markup ≠ a 50% margin (they are always different numbers).

حالات الاستخدام الشائعة

  • Setting product prices for an e-commerce store
  • Analyzing which product lines are most profitable
  • Comparing margin against industry benchmarks
  • Negotiating cost with suppliers to hit margin targets
  • Pitching profitability to investors

الأسئلة الشائعة

Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. A product that costs $60 and sells for $100 has a 40% margin but a 66.7% markup. They are never equal (unless both are zero).
Depends entirely on the industry. Software: 70–90% gross margin. Retail: 25–50%. Restaurants: 3–9% net margin. Compare to your industry average, not a generic benchmark.
Either raise prices (check elasticity first), reduce cost of goods (negotiate with suppliers, find alternatives), or reduce overhead. Usually a combination of all three is most effective.

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