Profit Margin Calculator
Turn revenue and cost into a margin percentage, the figure that tells you what share of every sale you actually keep.
Business Calculators
Margin, markup, break-even, growth and unit economics — the numbers that decide whether a business is actually working.
10 free calculators
Business
Margin, markup, break-even, growth and unit economics — the numbers that decide whether a business is actually working.
These ten answer one question from ten angles: is this business actually working? Revenue does not answer it, and neither does a bank balance. Margin, break-even and unit economics do.
The first test is profit margin — what share of each sale you keep. The second is break-even — the volume at which fixed costs are finally covered. Between them they explain most business failures: a healthy margin at a volume you cannot reach is a hobby, and high volume at a thin margin is a treadmill.
The profit-and-loss chain runs downward through gross profit, operating margin and net profit. Each strips out another layer of cost, and the gap between them is where problems hide. A business with 65% gross margin and 3% net margin does not have a pricing problem; it has an overhead problem, and only looking at all three tells you that.
Then the unit economics. Customer acquisition cost is what it costs to win one customer; customer lifetime value is the gross profit that customer contributes before they leave. The ratio between them is the single most useful number in a growth plan, and a commonly cited healthy target is 3:1 or better. Below 1:1 you are paying for the privilege of having customers.
Markup, revenue growth and business ROI round out the shelf — the first for pricing, the second for measuring a trend honestly, the third for judging whether a hire or a machine paid for itself.
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All 10 business calculators
Markup Calculator
Convert between cost, markup and selling price — and between markup and margin, the two numbers people mix up most often.
Break-Even Calculator
Find the unit volume and revenue at which fixed costs are finally covered, and chart how profit behaves either side of that point.
Business ROI Calculator
Judge a project, hire or piece of equipment by return on investment, annualised return and the payback period in months.
Revenue Growth Calculator
Compare two periods to get growth percentage, then annualise it so month-on-month and year-on-year figures stop misleading you.
Gross Profit Calculator
Subtract cost of goods sold from revenue to get gross profit and gross margin, the first health check on any product line.
Net Profit Calculator
Take revenue down through COGS, operating expenses, interest and tax to the bottom line and the net margin behind it.
Operating Margin Calculator
Express operating income as a share of revenue to see how efficiently the core business runs before financing and tax.
Customer Acquisition Cost Calculator
Divide total sales and marketing spend by new customers won to get CAC, the ceiling every growth plan has to respect.
Customer Lifetime Value Calculator
Estimate the gross profit one customer contributes over their whole relationship, then check it against CAC as a ratio.
How to choose the right tool
Margin or markup? They use the same two numbers and divide by different things. Margin divides profit by the selling price; markup divides the same profit by the cost. A product costing $60 and selling for $100 has a 40% margin and a 66.7% markup. Confusing them is the most expensive arithmetic mistake small businesses make, because a "40% markup" applied when you meant 40% margin leaves you 12 percentage points short on every sale. The markup calculator converts between them in both directions.
Which profit line? Use gross profit to judge a product or a price. Use operating margin to judge how efficiently the business runs before financing and tax. Use net profit to judge the business as a whole. Quoting gross margin when someone asked about profitability is technically an answer and practically a dodge.
Selling online? The general tools here still apply, but the ecommerce calculators handle the fee stacks — marketplace commission, fulfilment, payment processing, returns — that make an online margin different from a shop-floor one.
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Business questions
It depends on the industry more than on management. Grocery retail runs on 1–3% net margin, software on 20–40%, professional services somewhere between. The useful comparison is your own margin last quarter and your direct competitors', not a cross-industry average.
Divide fixed costs by the contribution margin per unit — the selling price minus the variable cost of making one. If fixed costs are $12,000 a month and each unit contributes $30, you need 400 units. The break-even calculator charts profit either side of that point.
Three to one is the figure most commonly quoted for subscription businesses: each customer should return three times what they cost to acquire. Below 1:1 growth destroys value. Far above 3:1 can also be a signal — usually that you are under-investing in acquisition.
Yes, if you want a number you can act on. Fully loaded CAC includes sales and marketing salaries, tooling and agency fees, not just ad spend. Paid-media-only CAC is useful for comparing channels but flatters the business badly.
Annualise it. The CAGR calculator converts any multi-period change into a single annual rate, which is the only fair basis for comparing a quarter against a year, or one product line against another with a different history.
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