Profit Margin Calculator — Know Your Real Margin

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Enter your revenue and cost — see profit, margin and markup in one tap. The number every business decision hangs on.

Revenue (selling price) ৳

Cost (your cost) ৳

How to use this tool

1. Enter your revenue — the selling price of the product or the total sales of the period.
2. Enter your cost — what you pay to make or buy it.
3. Press Calculate to see profit, margin percentage and markup percentage.

Example

You buy a product for 650 ৳ and sell it for 1,000 ৳. Profit = 350 ৳. Margin = 350 ÷ 1000 = 35% of the selling price; markup = 350 ÷ 650 = 53.8% on cost.

The formula

profit = revenue − cost  |  margin % = profit ÷ revenue × 100  |  markup % = profit ÷ cost × 100

What the result means

Margin measures profit as a share of the selling price; markup measures it as a share of your cost. The same 350 ৳ is a 35% margin but a 54% markup — shops quote markup because it sounds bigger; banks and investors look at margin. As a rule of thumb for trading businesses: below 10% margin is fragile, 20–40% is healthy.

Frequently asked questions

What is a good profit margin?

It depends on the industry: grocery retail often runs 5–15%, clothing 30–50%, services 40%+. Compare with businesses like yours, not with the whole world.

Margin vs markup — which one should I use?

Use markup when pricing from a cost ('cost plus 50%'), and margin when judging performance ('we keep 30% of sales'). Mixing them up is one of the most common small-business mistakes.

Does it include my rent and salary?

This tool shows gross margin — revenue minus the direct cost of the goods. Rent, salaries and marketing come out later; subtract them from the profit figure to see your net position.

Is my business data private?

Yes — the calculation happens entirely in your browser and nothing is uploaded or stored.

More tools from Ledger Harbor

Discount CalculatorThe real price after the saleMarkup CalculatorPrice from cost + markupVAT CalculatorAdd or remove VATROI CalculatorWhat your money earnedEMI CalculatorThe true monthly cost of a loan

Explore the island world

• Ledger Harbor — the island where this tool lives.
• The Main Island — drive the boat, explore the whole world.
• The 90s Kids Island — where most of us started.

Privacy & data: this tool runs entirely in your browser — nothing you type is uploaded, saved or sent anywhere. · Disclaimer: this tool is for guidance only, not financial advice — for important business or loan decisions, consult a qualified professional. · Privacy Policy · Disclaimer