How-to guide

How to Calculate Profit Margin for Your Business

The percentage of revenue that becomes actual profit after all costs.

Profit Margin — in plain English

For every £100 you bring in, profit margin tells you how much you actually keep. If you sell a product for £10 and it costs you £7 to make and sell it, your margin is 30%. The higher your margin, the more money you keep from each sale.

Formula
Profit Margin % = ((Revenue − Cost of Goods Sold) ÷ Revenue) × 100

Why Profit Margin matters for your business

Profit margin is the most important number in any business. Revenue can look healthy while margin is collapsing. A business with £500,000 revenue and 3% margin is less profitable than one with £100,000 revenue and 40% margin. Knowing your margin per product tells you which products are actually worth selling.

How AskBiz calculates Profit Margin from your data

Upload your sales data with cost and revenue columns. Ask "What is my profit margin per product?" AskBiz calculates gross margin for every product, ranks them from highest to lowest, flags products below a healthy threshold, and tells you exactly which ones to focus on and which to reprice.

1
Upload your data

Export a CSV or Excel file from your POS, accounting software, or spreadsheet and upload it to AskBiz.

2
Ask about Profit Margin

Type your question in plain English. Try: "What is my profit margin?" or "How to Calculate Profit Margin for Your Business"

3
Get your answer instantly

AskBiz returns the calculation with a chart, KPI breakdown, and specific recommendations — in seconds.

Real-world example

A retailer uploads 6 months of sales data. AskBiz finds their margin across 200 products ranges from 4% to 67%. Three products representing 40% of their volume have margins under 8%. AskBiz recommends repricing or discontinuing them, estimating a £3,200/month margin improvement.

Ask AskBiz about your Profit Margin

Upload your CSV or Excel file and ask "How to Calculate Profit Margin for Your Business" — get the answer with a chart and recommendations in under 60 seconds.

Upload your data — free →

No card required · 10 free questions · Results in seconds

Frequently asked questions about Profit Margin

What is a good profit margin for a small business?

It varies by industry, but generally: retail 5–20%, ecommerce 10–30%, SaaS 60–80%, services 20–40%. The important thing is knowing your margin per product, not just overall.

What is the difference between gross margin and net margin?

Gross margin is revenue minus direct costs (COGS). Net margin deducts all expenses including operating costs, salaries, rent, and tax. Net margin is always lower than gross margin.

Can AskBiz calculate margin automatically from my spreadsheet?

Yes. Upload a CSV or Excel file with your products, selling prices, and cost prices. Ask "What is my profit margin per product?" and AskBiz returns a full ranked breakdown in seconds.