Profit Margin
You know your margin.
You don't know where it sits.
See your percentile position vs industry benchmarks. One number tells you if you're leaving profit on the table.
The Gap to Next Tier
Additional Annual Profit
Target Margin
Common Margin Drivers
What This Means
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How do you calculate profit margin, and is yours good?
Profit margin is the share of revenue you keep after costs, calculated as revenue minus costs, divided by revenue. Whether yours is good depends on your industry. This benchmarker sets thresholds for seven service industries, for example Healthy from 60% and the top tier from 70% for agencies, and shows the dollar gap to the next tier.
How do I read my profit margin tier and percentile?
Your margin lands in one of four tiers for your industry. For agencies, 70% or more is the top tier, 60 to 69% Healthy, 50 to 59% Below Average, and under 50% Struggling. The percentile is your position on the industry scale: 75th or higher is the top quartile, under 25th the bottom quartile.