Profit Margin Calculator

Profit Margin Calculator

Revenue & Cost

$
Total amount your customer pays
$
Direct cost to produce/deliver the product

Optional: Operating Expenses

$
Sales, marketing, rent, overhead allocated per unit

Calculation Mode

Formulas: Margin = (Revenue - Cost) รท Revenue ร— 100%
$40.00
Gross Profit
Revenue minus COGS
40.0%
Gross Margin
% of revenue kept as profit
66.7%
Markup
% above cost
$40.00
Net Profit (per unit)
After operating expenses

Revenue Breakdown

Pricing Waterfall

10% Higher Cost
$66.00
34.0%
Current
$60.00
40.0%
10% Lower Cost
$54.00
46.0%

๐Ÿ’ฐ Revenue

$100.00
Total selling price per unit

๐Ÿ“ฆ Cost of Goods

$60.00
Direct production cost per unit

๐Ÿ“Š Operating Expenses

$0.00
Overhead per unit

โœ… Net Profit

$40.00
After all costs

Bulk Summary Qty: 1

MetricPer UnitTotal

๐Ÿ“š Key Formulas

  • Gross Margin = (Revenue โˆ’ COGS) รท Revenue ร— 100
  • Markup = (Revenue โˆ’ COGS) รท COGS ร— 100
  • Net Profit Margin = (Revenue โˆ’ Total Costs) รท Revenue ร— 100
  • Selling Price = Cost รท (1 โˆ’ Target Margin)
๐Ÿ’ก Profit margins vary significantly by industry. Use this calculator to benchmark your pricing strategy and identify cost optimization opportunities.