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Business, Pricing & Revenue Calculators · Margin & Markup

Free Profit Margin Calculator | Simple COGS & Advanced Service Pricing

Calculate profit margin percentage, net profit dollar amount, and markup percentage in Simple Product Mode or Advanced Service Job Mode.

Cost & Price Inputs

Profit Margin Calculator

Your Results

Margin, Profit & Markup

Profit Margin 40.00% Net Profit: $80.00 on $200.00 revenue
Net Profit ($)$80.00
Markup (%)66.67%
Total Cost$120.00
Revenue / Price$200.00

Step-by-step guide

How to Use the Profit Margin Calculator

  1. 1
    Enter Cost of Goods Sold (COGS) and Selling Price

    In Simple Mode, enter your direct cost and selling price.

  2. 2
    Switch to Advanced Mode for service jobs (Optional)

    Enter # of workers, hours to complete the job, average hourly pay, materials, and monthly overhead allocation.

  3. 3
    Review Profit Margin %, Profit ($), and Markup %

    Compare margin and markup side by side.

Formula & methodology

Profit Margin vs. Markup Formulas

Net Profit ($) = Selling Price − Total Cost (COGS + Labor + Overhead)
Profit Margin (%) = (Net Profit ÷ Selling Price) × 100
Markup (%) = (Net Profit ÷ Total Cost) × 100

Common questions

Frequently Asked Questions

What is a healthy profit margin for a service or hospitality business?

Full-service restaurants typically earn a 6%–15% net profit margin (and 60%–70% gross margin on food/beverage), while field service and trade businesses target a 15%–30% net profit margin per job.

How does Advanced Mode allocate overhead to a single job?

It divides your total monthly overhead by monthly billable hours to find your hourly overhead burn rate, then multiplies that rate by the hours required for the job.

Can profit margin ever exceed 100%?

No. Because profit cannot exceed total revenue, profit margin is always under 100%, whereas markup percentage can be 100%, 200%, or higher.

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