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Profit margin = (Revenue - Costs) / Revenue x 100. Enter your numbers into our free margin calculator for instant results.
Most small businesses target 10-20% net margin. It varies significantly by industry — see our industry benchmarks page for a detailed breakdown.
Markup is profit divided by cost. Margin is profit divided by selling price. A 50% markup equals only a 33.3% margin. Use our markup vs margin calculator to convert between the two instantly.
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TheMarginCalculator.com provides free profit margin calculators and industry benchmark data for small business owners and entrepreneurs. Every tool runs entirely in your browser — no signup required, no data collected, no cost.
Our tools include the margin calculator, gross margin calculator, net margin calculator, markup calculator, break-even calculator, selling price calculator, and industry margin benchmarks for 30+ sectors sourced from the NYU Stern Damodaran database.
TheMarginCalculator.com is a property of Skip The Line LLC, based in Birmingham, Alabama. We build practical tools and data resources to help business owners make smarter pricing and profitability decisions.
A good profit margin depends entirely on your industry. Software companies average 15-20% net margin. Home services businesses average 10-12%. Restaurants often operate at 3-5%. The number that matters is not a universal benchmark — it is how your margin compares to others in your specific sector. Use our industry benchmarks page to find out where you stand.
Profit margin equals revenue minus total costs divided by revenue multiplied by 100. For example if you earn $10,000 and your costs are $7,000 your margin is 30 percent. Use our free margin calculator to get your number instantly.
Gross margin subtracts only the direct cost of goods sold from revenue. Net margin subtracts every expense including overhead, salaries, rent, interest, and taxes. Net margin is always lower and is the truest picture of profitability.
Markup is profit divided by cost. Margin is profit divided by selling price. A 50 percent markup produces only a 33.3 percent margin. Confusing the two is one of the most common and costly pricing mistakes in small business. Use our markup vs margin converter to switch between them instantly.
Our industry margin benchmarks are sourced from the NYU Stern Damodaran database maintained by Professor Aswath Damodaran. It is one of the most widely cited financial datasets in professional finance and is updated annually from real public company filings.