Profit Margin Calculator

Calculate your profit margin percentage from revenue and cost.

How Does This Calculator Work?

Profit margin is calculated as (revenue − cost) ÷ revenue × 100. It tells you what portion of each sales dollar is profit, as opposed to markup, which is measured against cost instead of revenue.

Profit margin tells you what percentage of your revenue is actual profit after costs. This calculator gives you that figure instantly from your revenue and cost numbers.

Example Calculation

Retail Example

An item sells for $100 and costs $60 to produce.

((100-60)/100) × 100 = 40% profit margin.

Frequently Asked Questions

What's the difference between margin and markup?

Margin is profit as a percentage of revenue (selling price). Markup is profit as a percentage of cost. The two numbers are always different for the same sale — see our Markup Calculator to compare.

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