Profit Margin Calculator

Calculate your profit margins to understand your business profitability

Business Financials
Enter your revenue and cost information

Include all costs: materials, labor, overhead, etc.

Results
Your profitability metrics
Profit Margin
30.00%
Gross Profit£15000.00
Markup42.86%

Excellent! Your profit margin is healthy. Maintain your cost control and pricing strategy.

Understanding Profit Margins

Profit Margin shows what percentage of your revenue is actual profit. It's a key indicator of your business's financial health and pricing strategy effectiveness.

Formula

Profit Margin = (Revenue - Costs) / Revenue × 100

Industry Benchmarks

  • • Retail: 5-10%
  • • Restaurants: 3-5%
  • • Professional Services: 15-20%
  • • Software/SaaS: 70-90%