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Profit Margin Calculator

Calculate the profit margin and markup on a product or service from its cost and selling price.

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Frequently asked questions

Quick answers before you start.

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A 33% margin means you keep one-third of every sale; a 50% markup means you added half the cost on top.

What is a good profit margin?

A 20–40% net margin is healthy for most small businesses across sectors. Services can push higher since there's little cost of goods. If your margin is under 10%, pricing or costs need attention.

How do I increase my profit margin?

Raise prices (the fastest lever), cut costs, or shift to higher-margin offerings. Raising prices 10% on a 25% margin business improves margin by roughly 8 points, so it usually beats cost-cutting.

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