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Free profit margin calculator
Margin vs. markup: know what you actually keep on every job. Free, no signup.
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Related definitions
Profit margin answers the only question that matters about a job: of every dollar that came in, how many cents did you keep? This calculator also shows markup — the number people constantly confuse with margin — so you can see both side by side.
The formula, in plain English
Profit = revenue − costs. Margin = profit ÷ revenue × 100 (your keep-rate per dollar of sales). Markup = profit ÷ costs × 100 (how much you marked up what you spent). A 50% markup is only a 33.3% margin — same job, two very different numbers.
Worked example
A job brings in $10,000 of revenue and costs you $6,500 all-in. Profit = $3,500. Margin = 3,500 ÷ 10,000 × 100 = 35.0%. Markup = 3,500 ÷ 6,500 × 100 = 53.8%.
Tips
- Quote in margin, not markup. Margin is the number lenders, buyers, and accountants look at — and it is the one that tells you if a job was worth it.
- Count all costs. Materials and labor are obvious; card processing fees, fuel, software, and your own time are the ones that silently eat margin.
- Track margin per job, not just per year. One underpriced job hides inside healthy annual numbers — per-job margins show you exactly which work to stop taking.
Also free
markup calculator, hourly rate calculator, service price calculator — and the free invoice generator when it is time to bill.
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by revenue (what you keep per dollar of sales); markup divides profit by costs (how much you added on top of what you spent). A 50% markup equals a 33.3% margin.
What is a good profit margin?
It varies widely by trade. Service businesses with low material costs typically run higher margins than businesses reselling expensive materials. The useful comparison is against your own past jobs, not someone else's industry.
Can margin be negative?
Yes — if costs exceed revenue, the margin goes negative and the job lost money. That is exactly what this calculator is for: catching those jobs before you quote them.
Is this calculator really free?
Yes. Unlimited calculations, no signup, no watermark, no catch — like all of Billia's free tools.
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