Pricing Updated 2026-07-15
Profit Margin Calculator for Small Business
Use our free profit margin calculator for small business to calculate your profit margin percentage based on revenue and costs.
The formula
How the calculation works
Margin = (Revenue - Cost) / Revenue
Worked examples
Real-world scenarios
Healthy Retail Product
Standard retail markup.
60.0% Profit Margin
Digital Download
High margin digital product.
92.0% Profit Margin
Dropshipping Gadget
Tight margin product with high acquisition costs.
25.0% Profit Margin
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FAQ
Common questions
What is a good profit margin?
It varies by industry, but generally a 10% net profit margin is considered average, and 20% is considered high.
How is profit margin calculated?
Net Profit Margin = (Net Profit / Total Revenue) x 100.