Free Financial Tool
Calculate your profit margin and markup in seconds
Enter your cost and selling price to instantly see profit margin, markup percentage, profit per unit, monthly revenue, and breakeven point. Switch modes to find the selling price needed for a target margin.
Inputs
Enter your product or service costs
Why This Matters
Pricing is the fastest lever for small business profitability
Many small businesses set prices based on gut feeling or competitor copying. Understanding your actual margins reveals whether you're pricing for growth or slowly losing money.
Know your true profit
Revenue can be misleading. A business doing $50K/month with 10% margins keeps less than one doing $30K/month at 30%. Margin is what you actually take home.
Price with confidence
Use the "Find Selling Price" mode to work backward from a target margin. Stop guessing and set prices that cover costs and deliver the profit you need.
Understand your breakeven
Every business has fixed costs. Knowing how many units you need to sell just to break even helps you set realistic sales targets and plan for growth.
Industry Benchmarks
Typical profit margins by industry
Use these benchmarks to see how your margins compare. Remember, these are averages and vary by region, scale, and business model.
Software / SaaS
Gross margin
Professional Services
Gross margin
E-commerce / Retail
Gross margin
Home Services (HVAC, Plumbing)
Gross margin
Restaurants / Food Service
Gross margin
Construction
Gross margin
How It Works
Two modes for every pricing question
Calculate Margin mode: Enter your cost and selling price. Instantly see your profit margin, markup, profit per unit, and breakeven point.
Find Selling Price mode: Enter your cost and desired margin percentage. The calculator tells you exactly what to charge to hit that margin.
Add your monthly units and fixed costs to see gross profit, net profit, and how far above or below breakeven you are.
Product Fit
Price smarter, then grow faster with SmallForce
Once your margins are dialed in, SmallForce helps you drive more customers through the door with AI-powered social media, WhatsApp messaging, Google review management, and an AI receptionist that never misses a call.
FAQ
Profit margin calculator FAQ
Common questions about profit margins, markup, and pricing.
What is profit margin?
Profit margin is the percentage of revenue that remains as profit after subtracting costs. For example, if you sell a product for $100 and it costs $60, your profit margin is 40%. It's calculated as (selling price − cost) ÷ selling price × 100.
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. For example, buying at $50 and selling at $100 gives a 50% margin but a 100% markup. They describe the same profit from different reference points.
What is a good profit margin for a small business?
It varies by industry. Service businesses often aim for 50-70% gross margins. Retail typically sees 25-50%. Restaurants average 3-9% net margin. Use this calculator to benchmark your margins and identify pricing opportunities.
How do I calculate the selling price from a target margin?
Switch to 'Find Selling Price' mode, enter your cost and target margin percentage, and the calculator will show the required selling price. The formula is: selling price = cost ÷ (1 − target margin %).
What are fixed costs?
Fixed costs are expenses that don't change with sales volume, such as rent, salaries, insurance, and software subscriptions. This calculator uses your fixed costs to determine how many units you need to sell to break even.
What is breakeven?
Breakeven is the number of units you need to sell to cover all fixed costs. Below breakeven, you're losing money. Above it, every additional sale contributes to net profit.
Is this calculator free?
Yes. There are no fees, sign-ups, or limits. All calculations run in your browser and no data is sent to any server.
Does this work for services, not just products?
Yes. Replace 'cost price' with your cost to deliver the service (labor, materials, overhead per job) and 'selling price' with what you charge the client. The margin and markup calculations work the same way.
How do I improve my profit margin?
There are two levers: increase your selling price or decrease your costs. You can also increase volume to spread fixed costs across more units, improving net margin. Use this calculator to model different scenarios.