Profit Margin Calculator

Margin vs markup — quick reference

• Margin = profit / selling price × 100. Tells you what fraction of revenue is profit.
• Markup = profit / cost × 100. Tells you how much you added on top of cost.

Quick conversion table:

Industry benchmark margins

• Grocery: 1–3%
• E-commerce (retail): 5–10%
• Restaurants: 3–9% (food cost ~30% means 70% gross margin on food, but ops eat most of it)
• Professional services: 20–50%
• Software / SaaS: 70–90%
• Luxury goods: 50–80%

Common use cases

• Setting prices on a new product line so you hit your target margin
• Spot-checking a wholesale supplier's margin claim ("we offer 40% margin to retailers" — really?)
• Forecasting gross profit for a budget
• Comparing two pricing options side-by-side