Profit Calculator
Calculate profit margin, markup, and profitability for your products
Profit Analysis
Understanding Profit Metrics
📊 Profit Margin
Profit as a percentage of revenue
Margin = (Revenue - Cost) / Revenue × 100
📈 Markup
Profit as a percentage of cost
Markup = (Revenue - Cost) / Cost × 100
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Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that remains as profit after all costs are deducted. It shows how much of each dollar in sales your business keeps as profit.
What's the difference between gross and net profit?
Gross profit is revenue minus cost of goods sold (COGS). Net profit is what remains after ALL expenses (including operating costs, taxes, interest) are deducted.
What is a good profit margin?
A good profit margin varies by industry. Generally, 5% is low, 10% is average, and 20%+ is considered excellent. Service businesses often have higher margins than retail.
How do I improve my profit margin?
You can improve margins by increasing prices, reducing costs, improving efficiency, or focusing on higher-margin products/services.
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