Profit Margin Calculator.
Maximize your business potential with high-precision financial analysis. Instantly evaluate Gross Profit, margin vs. markup, and the impact of discounts.
Please enter a selling price to avoid division by zero
Quick Example
If you buy a product for $50 and sell it for $80:
- Profit: $30.00
- Profit Margin: 37.50%
- Markup: 60.00%
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Help others optimize their business pricing
Markup Logic
Markup = (Price - Cost) / Cost. Essential for determining how much to add to your acquisition price.
Margin Focus
Margin = (Price - Cost) / Price. Shows the exact percentage of every revenue dollar that is pure profit.
Break-Even
Analyze the minimum sales volume required to cover fixed overheads and start generating ROI.
Pricing Strategy
Confusing Margin with Markup is a common mistake that leads to underpricing. ToolifyWoo helps you visualize the gap to ensure sustainable growth.
Gross ProfitRevenue - Cost
Margin %(Profit / Revenue) * 100
Markup %(Profit / Cost) * 100
The "Discount Trap"
Did you know? If you have a 30% margin and offer a 10% discount, you need a 50% increase in volume just to break even on profit!
Analyze before you discount.
Industry Benchmarks
Global Data 2026| Industry Sector | Avg. Gross Margin | Profitability Key |
|---|---|---|
| Fashion Retail | 45% - 60% | High return handling |
| SaaS & Digital | 70% - 90% | LTV/CAC Ratio |
| Manufacturing | 25% - 35% | Supply chain efficiency |
| Grocery/FMCG | 10% - 20% | Inventory turnover |
Pricing FAQ
How to price for a 40% margin?
Use the formula: Price = Cost / (1 - Margin). If your cost is $60, calculation is $60 / 0.6 = $100.
Markup vs. Margin: What's the difference?
Markup is a percentage of the cost; Margin is a percentage of the selling price. A 100% markup (doubling the price) results in only a 50% margin.