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Profit Margin Calculator

Calculate your profit margin, markup percentage, and see how pricing affects your bottom line.

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Enter Your Numbers

$
$

Profit

$0.00

per unit

Profit Margin

0%

of selling price

Markup

0%

on cost

Scale Your Numbers

See how your profits add up at different volumes

Total Revenue

$0

Total Cost

$0

Total Profit

$0

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Understanding Profit Margins

1 Profit Margin vs Markup

Profit Margin is profit as a percentage of selling price. A 25% margin means you keep $0.25 of every $1 sold.

Markup is profit as a percentage of cost. A 33% markup on a $75 cost means adding $25 to get a $100 price.

2 Healthy Profit Margins

Retail: 25-50% margin
Food service: 3-9% margin
Software/SaaS: 70-90% margin
Consulting: 50-80% margin

Your ideal margin depends on industry, volume, and overhead costs.

3 The Formulas

Profit = Price - Cost

Margin % = (Profit / Price) x 100

Markup % = (Profit / Cost) x 100

4 Quick Tips

  • Always include ALL costs (shipping, fees, packaging)
  • Higher volume can justify lower margins
  • Review margins quarterly as costs change

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