Calculation Mode
Select what you want to calculate
Values
Enter your cost and revenue figures
Price Breakdown
Visual cost and profit distribution
Cost
$70
70.0%
Profit
$30
30.0%
Revenue
$100
100%
Formulas
Mathematical formulas used
Profit Margin Formula:
Margin = (Revenue - Cost) / Revenue × 100
= ($100 - $70) / $100 × 100 = 30.00%
Markup Formula:
Markup = (Revenue - Cost) / Cost × 100
= ($100 - $70) / $70 × 100 = 42.86%
Margin / Markup Conversion
Quick reference conversion table
| Margin | Markup | Margin | Markup |
|---|---|---|---|
| 10% | 11.1% | 40% | 66.7% |
| 15% | 17.6% | 50% | 100% |
| 20% | 25% | 60% | 150% |
| 25% | 33.3% | 70% | 233.3% |
| 30% | 42.9% | 80% | 400% |
Industry Margin Benchmarks
Typical margins by industry
| Industry | Gross Margin | Net Margin |
|---|---|---|
| Software/SaaS | 70-90% | 15-25% |
| E-commerce | 40-60% | 5-10% |
| Retail | 25-35% | 2-5% |
| Restaurants | 60-70% | 3-9% |
| Manufacturing | 25-35% | 5-10% |
| Professional Services | 50-70% | 10-20% |
What if you targeted a different margin?
Required Revenue
$100
Personalized Insights
2 insights based on your inputs
Volume Impact
At 100 units/month, you'd generate $3,000 in monthly profit.
Break-Even Point
With $10K fixed costs, you'd break even at 334 units.
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Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that remains as profit after subtracting costs. Calculated as (Revenue - Cost) / Revenue × 100. A 30% margin means you keep $0.30 of every dollar in revenue as profit.
What is the difference between margin and markup?
Margin is profit as a percentage of selling price (revenue). Markup is profit as a percentage of cost. A 50% markup on a $100 item = $150 price with $50 profit. The same $50 profit gives a 33.3% margin ($50/$150).
What is a good profit margin?
Good margins vary by industry. Retail: 2-4% net, Restaurants: 3-9%, Software: 70-90% gross. Focus on gross margin (before overhead) and net margin (after all expenses). Compare to industry benchmarks.
How do I convert markup to margin?
Margin = Markup / (1 + Markup). For example, 50% markup = 0.50 / 1.50 = 0.333 = 33.3% margin. Conversely, Markup = Margin / (1 - Margin). 33.3% margin = 0.333 / 0.667 = 50% markup.
What is gross margin vs net margin?
Gross margin subtracts only direct costs (COGS) from revenue. Net margin subtracts all expenses including overhead, taxes, and interest. A business can have 60% gross margin but only 10% net margin after expenses.
How this works
Calculations are run entirely in your browser. No inputs are sent to our servers and no account is required. Formulas follow standard US definitions from the IRS and the CFPB where applicable; international users should confirm local tax and regulatory rules apply.
What this tool can’t do
When to consult a professional
This is a software engineering tool, not financial advice. Run the math here, then take the result to a certified financial planner, CPA, or your bank before making a decision that materially affects your money.
Sources
- [1]Consumer Financial Protection Bureau (CFPB)Official sourceconsumerfinance.govAccessed Apr 21, 2026
US consumer finance regulator; authoritative on mortgage disclosures, APR rules, credit cards.
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).