Profit Margin Calculator

Whether you are pricing a product, analysing a business, or evaluating an investment, our Profit Margin Calculator on Diztool gives you gross margin, net margin, and markup in seconds. How to Use: 1. Enter the cost price — what it costs you to make or buy the product. 2. Enter the selling price — what you charge the customer. 3. Instantly see gross profit, profit margin percentage, and markup percentage. Alternatively: 1. Enter cost price and your desired profit margin percentage. 2. The tool calculates the ideal selling price to hit that margin. Key Definitions: Gross Profit = Selling Price minus Cost Price. Profit Margin % = (Gross Profit / Selling Price) x 100. This tells you what percentage of revenue is profit. Markup % = (Gross Profit / Cost Price) x 100. This tells you how much you increased the cost to reach the selling price. Margin vs Markup — the important difference: A 50 percent markup does NOT equal a 50 percent margin. If cost is 100 and you add 50 percent markup, selling price is 150 and margin is 33.3 percent. Confusing these is a common and costly pricing mistake. Gross vs Net Margin: Gross margin only accounts for cost of goods sold. Net margin accounts for all operating expenses, taxes, and interest. This tool calculates gross margin. To find net margin, use total costs including overheads as your cost input. Typical Profit Margins by Industry: Retail: 2 to 5 percent net margin. Grocery: 1 to 3 percent. Software/SaaS: 20 to 40 percent. Restaurants: 3 to 9 percent. Manufacturing: 5 to 10 percent.