Profit Margin Calculator
Calculate profit, profit margin, and markup from revenue and cost, instantly in your browser.
How to use the Profit Margin Calculator
- Enter the revenue or selling price.
- Enter the cost of the product or service.
- Click Run to see the profit, the profit margin percentage and the markup percentage.
How the Profit Margin Calculator works
Profit is simply revenue minus cost. The two percentages divide that profit by different bases:
Profit margin = (Revenue − Cost) ÷ Revenue × 100Markup = (Revenue − Cost) ÷ Cost × 100
A product that costs 60 and sells for 100 has a 40% margin but a 66.7% markup. Retailers usually price using markup, while accountants and investors report margin, so mixing them up can make a business look more or less profitable than it is.
Frequently asked questions
- Is this profit margin calculator free?
- Yes. Calculate profit margin at no cost, with no account required.
- What's the difference between margin and markup?
- Profit margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. They give different percentages for the same sale.
- How is profit margin calculated?
- Profit margin = (Revenue - Cost) / Revenue x 100.