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Profit Margin Calculator

Calculate gross and net profit margins for your business. Understand how much profit you make on each dollar of revenue.

Total Revenue

Cost of Goods Sold (COGS)

Fill in the fields above and click Calculate to see your results.

How to use

Calculate gross and net profit margins for your business. Understand how much profit you make on each dollar of revenue.

How it's calculated

Gross Profit Margin

(revenue - cost) / revenue * 100

Percentage of revenue that becomes profit

Gross Profit

revenue - cost

Total profit before expenses

Markup Percentage

(revenue - cost) / cost * 100

How much you mark up from cost

Examples

Small cafe monthly revenue

Cost of Goods Sold (COGS):35,000,000
Total Revenue:50,000,000

Retail shop quarterly

Cost of Goods Sold (COGS):90,000,000
Total Revenue:150,000,000

Freelancer project

Cost of Goods Sold (COGS):8,000,000
Total Revenue:20,000,000

Industry Benchmarks

Metric	Typical Range
Average for Vietnamese SMBs across industries	30 %

Frequently Asked Questions

How do you calculate profit margin?

Profit margin is calculated by dividing gross profit (revenue minus cost) by total revenue, then multiplying by 100 to get a percentage. Formula: (Revenue - Cost) / Revenue × 100%

What is a good profit margin?

A good profit margin varies by industry. Generally, 10% is considered average, 20% is good, and 30%+ is excellent. Vietnamese SMBs average around 25-30% gross margin.

What's the difference between margin and markup?

Margin is profit as a percentage of revenue, while markup is profit as a percentage of cost. A 50% markup equals a 33% margin.