Margin Calculator

Calculate gross profit margin, selling price, or cost from any two values. Includes industry margin benchmarks. Free.

Revenue
$
Cost
$
Industry Gross Margin Benchmarks
Industry
Avg Gross Margin
SaaS / Software
70–80%
Financial Services
50–70%
Healthcare
40–60%
E-commerce
20–50%
Manufacturing
25–35%
Retail
20–40%
Grocery / Food
2–5%

How to Use

  1. 1 In 'Calc Margin' mode, enter revenue (selling price) and cost to calculate gross profit margin percentage.
  2. 2 In 'Calc Revenue' mode, enter your cost and target margin to find the required selling price.
  3. 3 In 'Calc Cost' mode, enter revenue and margin to calculate the maximum allowable cost.

Use Cases

Pricing Strategy

Calculate the minimum selling price needed to achieve your target profit margin on any product or service.

Product Profitability Analysis

Quickly compare profit margins across your product catalog to identify your most and least profitable offerings.

Cost Control

Find the maximum allowable cost to maintain a specific profit margin given a fixed selling price.

FAQ

Gross profit margin is the percentage of revenue remaining after subtracting the cost of goods sold (COGS). Formula: Gross Margin = (Revenue - Cost) / Revenue × 100.

It depends heavily on the industry. SaaS typically sees 70-80% gross margins. E-commerce ranges from 20-50%. Retail grocery can be as low as 2-5%. Always compare to your industry benchmark.

Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% markup equals a 33.3% margin. Margin is more commonly used in financial analysis.

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