Profit Margin Calculator

Find your profit and margin from cost and selling price — and see the matching markup.

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<p style="font-size:12px"><a href="https://rebota.in/tools/profit-margin-calculator">Profit Margin Calculator</a> by Rebota</p>

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📘 Read the full guide: Profit Margin vs Markup — The Difference That Changes Your Prices →

How to use the Profit Margin Calculator

Enter what the product costs you (purchase or production cost).
Enter the price you sell it at, excluding GST/VAT.
Optionally enter units sold to see total profit.

Formula used

Profit = Selling price − Cost

Profit margin % = Profit ÷ Selling price × 100

Markup % = Profit ÷ Cost × 100

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Profit Margin Calculator — FAQs

What is a good profit margin?▾

It depends on the industry. Retail and distribution often run 5–15% net and 20–40% gross margins; software and services can exceed 60% gross. Compare against businesses like yours.

What is the difference between margin and markup?▾

Margin divides profit by the selling price; markup divides it by cost. A product bought for 70 and sold for 100 has a 30% margin but a 42.9% markup.

Should GST be included in the selling price?▾

No. GST or VAT collected belongs to the government, so calculate margin on the price excluding tax.

Gross margin vs net margin?▾

Gross margin only subtracts the direct cost of goods. Net margin also subtracts rent, salaries, interest and tax, so it is always lower.

How to use the Profit Margin Calculator

Formula used

Profit Margin Calculator — FAQs

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