Profit Margin Calculator

Calculate profit margin, markup, and profit from cost and revenue — instantly

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Profit Analysis

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Industry Profit Margin Benchmarks

Software / SaaS

70–90%

Professional Services

15–30%

Manufacturing

5–10%

Retail / E-commerce

2–5%

Restaurants / F&B

3–9%

Construction

5–15%

Frequently Asked Questions

What is profit margin?+
Profit margin is the percentage of revenue that remains as profit after deducting costs. Formula: Profit Margin = (Revenue - Cost) / Revenue × 100. A 30% margin means you keep ₹30 of every ₹100 in sales.
What is the difference between margin and markup?+
Margin is profit as a percentage of selling price: (Price - Cost) / Price × 100. Markup is profit as a percentage of cost: (Price - Cost) / Cost × 100. A 50% markup = 33.3% margin.
What is a good profit margin?+
It varies by industry. Retail: 2-5%, Software/SaaS: 70-90%, Manufacturing: 5-10%, Professional services: 15-30%. Generally, above 20% net margin is considered healthy.
How do I improve my profit margin?+
Increase prices, reduce cost of goods, negotiate better supplier terms, reduce overhead expenses, improve operational efficiency, or shift to higher-margin products/services.
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