See what you actually keep after costs, for a single product or a whole batch of sales.
Sales and costs
Results
- Revenue = price × quantity
- Gross profit = revenue − (unit cost × quantity)
- Net profit = gross profit − other costs. Net margin = net profit ÷ revenue
Margin
The share of the selling price you keep as profit. A $100 sale with a 30% margin leaves you $30.
Markup
How much you add on top of cost. A 30% markup on a $100 cost makes a $130 price, which is only a 23% margin.
Break-even
The point where sales cover every bill. Below it you lose money; above it each sale adds profit.
How to use Profit Margin Calculator
- Enter your selling price and the number of units sold.
- Enter what one unit costs you to make or deliver.
- Add any other costs for the period, like advertising or booth fees.
- Read your gross profit, net profit and margin, and check the bar to see costs versus profit.
Frequently asked questions
What is the difference between gross profit and net profit?
Gross profit is revenue minus the direct cost of what you sold. Net profit subtracts your other costs too, like rent, software and advertising. Net profit is what the business actually keeps.
How do I calculate profit margin?
Profit margin = profit ÷ revenue × 100. If you sold $5,400 and kept $2,490 after costs, your net margin is 46.1%.
What is a good net profit margin?
Many small businesses land between 7% and 20% net margin, but it varies widely by industry. Tracking it monthly matters more than hitting a single number.
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