Profit Margin Calculator
3-in-1Calculate gross, operating, and net profit margins. Find your ideal selling price from a target margin, and convert between markup and margin percentages.
Revenue & Cost
Optional: Operating Expenses
OPEX includes rent, salaries, utilities — everything except COGS.
Enter revenue and cost to calculate margins
Profit Margin Formulas
Revenue − COGS(Gross Profit ÷ Revenue) × 100(Gross Profit ÷ COGS) × 100((Gross Profit − OPEX) ÷ Revenue) × 100(Net Profit ÷ Revenue) × 100Cost ÷ (1 − Target Margin%)Industry Profit Margin Benchmarks
Typical margin ranges across major industries (indicative).
Software / SaaS
Gross Margin
70–80%
Net Margin
15–25%
E-commerce / Retail
Gross Margin
30–50%
Net Margin
2–5%
Manufacturing
Gross Margin
25–40%
Net Margin
5–10%
Restaurant / F&B
Gross Margin
60–70%
Net Margin
3–9%
Consulting
Gross Margin
50–70%
Net Margin
10–20%
Healthcare
Gross Margin
40–60%
Net Margin
5–15%
ℹ️Margins vary significantly by company size, geography, and business model. Use these as directional benchmarks only.
Margin vs Markup — What's the Difference?
Margin
Profit as a percentage of the selling price.
Margin = (Profit ÷ Revenue) × 100Example: Cost ₹80, Price ₹100 → Margin = 20%
Markup
Profit as a percentage of the cost price.
Markup = (Profit ÷ Cost) × 100Example: Cost ₹80, Price ₹100 → Markup = 25%
Frequently Asked Questions
What is gross profit margin?
Gross profit margin is the percentage of revenue remaining after subtracting the cost of goods sold (COGS). Formula: ((Revenue − COGS) ÷ Revenue) × 100. It shows how efficiently a company produces goods relative to its revenue.
What is the difference between markup and margin?
Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. For example, if cost is ₹80 and selling price is ₹100, the markup is 25% (20÷80) but the margin is 20% (20÷100). They are often confused but are very different.
What is a good profit margin for a business?
It depends on the industry. Generally: net margin above 20% is excellent, 10–20% is good, 5–10% is average, and below 5% is thin. Retail businesses often have 2–5% net margins while software companies can have 20–30%+.
How do I find the selling price from a desired margin?
Use the formula: Selling Price = Cost ÷ (1 − Desired Margin%). For example, if cost is ₹80,000 and you want a 40% margin, the selling price = 80,000 ÷ 0.6 = ₹1,33,333.
What is operating margin?
Operating margin (EBIT margin) is the percentage of revenue remaining after subtracting COGS and all operating expenses (salaries, rent, utilities), but before interest and taxes. It shows core business profitability.