How to use the Profit Margin Calculator
Fill in the fields above and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
The formula
profit = revenue − cost; margin = profit ÷ revenue × 100
Examples
- Cost 60, revenue 100
Profit: 40 Profit margin: 40%
- Cost 35, revenue 50
Profit: 15 Profit margin: 30%
- Cost 800, revenue 1,000
Profit: 200 Profit margin: 20%
Limitations and assumptions
Does not allocate overhead, tax, financing or other accounting adjustments.
Frequently asked questions
How do I calculate profit margin?
(Revenue − cost) ÷ revenue × 100.
What is the difference between margin and markup?
Margin divides profit by revenue; markup divides it by cost. A 100 item costing 60 has a 40% margin and a 66.7% markup.
What is a good profit margin?
It varies widely by industry; compare against similar businesses.
Does it include overhead and tax?
No. It is a gross margin from the two numbers you enter.