Profit Margin Calculator
Calculate your profit, margin percentage, and markup from cost and selling prices. Or flip it round — enter a target margin and get the selling price you need to hit it.
Frequently asked questions
What is a good profit margin for a small business?
It varies significantly by industry. Retail typically targets 2–5% net margin, while professional services (consultants, agencies) often achieve 15–30%. As a general benchmark, a net profit margin above 10% is considered healthy for most small businesses. Gross margins are always higher — focus on net margin once all costs are accounted for.
What is the difference between profit margin and markup?
Margin is profit expressed as a percentage of the selling price. Markup is profit expressed as a percentage of the cost price. For example: cost £60, selling price £100. Profit is £40. Margin = £40 / £100 = 40%. Markup = £40 / £60 = 66.7%. The key difference is the denominator — always clarify which figure is being discussed.
How do I calculate gross profit margin?
Gross profit margin = (Selling price − Cost of goods) ÷ Selling price × 100. This calculator uses that formula directly. For example, if you sell a product for £150 that costs £90 to produce, your gross margin is (£150 − £90) ÷ £150 × 100 = 40%. Note that net margin also deducts overhead costs such as rent, salaries, and admin.
Related tools
Track your margins across every job
InvoiceAdept lets you add line items with costs and markups, send invoices in seconds, and see exactly how much profit you made per client.
Start free trial