Profit Margin Calculator
Calculate profit margin, markup, selling price, cost price, break-even units, revenue targets and sensitivity. Use it for products, services, retail, SaaS, hospitality or custom business pricing.
Calculator
Your cost to buy, make or deliver one unit.
Price charged to the customer per unit.
Profit as a percentage of selling price.
Used for total revenue and total profit.
Break-even and fixed costs
Estimate how many units you need to sell to cover fixed costs.
Price breakdown
Sensitivity table
Shows how margin changes if cost or selling price shifts.
| Scenario | Cost | Sell price | Margin | Profit/unit |
|---|
Typical margin guide
| Industry | Typical net margin | Typical gross margin | Notes |
|---|---|---|---|
| Retail | 2–5% | 20–35% | High volume, thinner margins |
| Food and hospitality | 3–9% | 60–75% | Overheads can reduce net profit |
| SaaS/software | 10–30% | 60–90% | Scale can improve profitability |
| Professional services | 15–25% | 30–60% | Labour and utilisation matter |
| Construction | 2–6% | 15–25% | Materials and labour dominate |
Worked steps
Interpretation
How profit margin works
Profit margin shows how much of your selling price is kept as profit after covering cost. It is different from markup.
For example, if a product costs £40 and sells for £60, profit is £20. The margin is 33.3% because £20 is one third of the selling price. The markup is 50% because £20 is half of the cost price.