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Profit Margin Calculator

Calculate your gross profit, profit margin percentage, and markup to analyze your business profitability.

Profit Calculator

Enter your revenue and costs to calculate profit margins

Total Revenue ($)

Total Costs ($)

Results

Your profit analysis breakdown

Enter your revenue and costs to see profit calculations

Understanding Profit Margin

Profit margin shows what percentage of your revenue becomes profit after covering all costs. It's a key indicator of business efficiency and pricing strategy.

Formula: (Revenue - Costs) ÷ Revenue × 100

Good Margins: 15-20% or higher depending on industry

Use Case: Compare profitability across products or time periods

Improving Your Margins

There are several strategies to improve your profit margins and increase business profitability.

• Increase prices: Test higher pricing with value justification
• Reduce costs: Negotiate with suppliers, improve efficiency
• Focus on high-margin products: Promote your most profitable items
• Add value: Bundle products or offer premium services