Profit Margin Calculator
Calculate gross profit, profit margin, markup, and break-even revenue from your revenue and total cost. Useful for pricing, product mix decisions, and profitability reviews.
Your Result
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| Result | What it means? |
|---|---|
| ≥ 20% | Excellent A profit margin of 20% or higher is generally considered strong across most industries. |
| 10–20% | Good A profit margin between 10% and 20% is healthy for many businesses. |
| 0–10% | Low A profit margin below 10% leaves little room for unexpected costs or downturns. |
| < 0% | Loss Costs exceed revenue — the operation is currently unprofitable at these inputs. |
| — | No clear result Enter revenue and cost to see the profit margin. |
Profit Margin Formula
Profit margin = Revenue / − Cost / Revenue
Profit margin expresses gross profit as a percentage of revenue. It answers the question: "of every dollar earned, how much is profit?"
- Margin (profit / revenue) and markup (profit / cost) are related but not identical: a 50% markup on cost equals a 33.3% margin on revenue.
- Break-even revenue equals total cost — the point at which gross profit is exactly zero.
This calculator provides an estimate of profitability based on the inputs you provide. It does not account for taxes, financing costs, depreciation, or non-operating items. Use it as a planning aid, not as financial advice.