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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ResultWhat it means?
≥ 20%ExcellentA profit margin of 20% or higher is generally considered strong across most industries.
10–20%GoodA profit margin between 10% and 20% is healthy for many businesses.
0–10%LowA profit margin below 10% leaves little room for unexpected costs or downturns.
< 0%LossCosts exceed revenue — the operation is currently unprofitable at these inputs.
—No clear resultEnter revenue and cost to see the profit margin.

Profit Margin Formula

Profit margin=Revenue− CostRevenue

Profit margin expresses gross profit as a percentage of revenue. It answers the question: "of every dollar earned, how much is profit?"

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