Depends on industry: software can exceed 70%, grocery is single digits.

This is gross margin (price − direct cost). Net margin also subtracts overhead and tax.

What's a good profit margin?

Highly industry-dependent — software can exceed 70%, grocery is single digits.

Gross uses direct cost; net also subtracts overhead, tax and interest.

Home › Business & Money Math › Profit Margin Calculator

Profit Margin Calculator

Free profit margin calculator. Find profit and profit margin percentage from price and cost.

Margin is profit as a percentage of the selling price — the key metric for pricing and profitability.

Profit = price − cost; margin % = profit ÷ price × 100. Margin shows profit as a share of revenue.

Selling at $120 with a $75 cost yields $45 profit and a 37.5% margin.

Good margin?: Depends on industry: software can exceed 70%, grocery is single digits.
Gross vs net margin?: This is gross margin (price − direct cost). Net margin also subtracts overhead and tax.
What's a good profit margin?: Highly industry-dependent — software can exceed 70%, grocery is single digits.
Gross vs net margin?: Gross uses direct cost; net also subtracts overhead, tax and interest.