Profit Margin Calculator
Calculate gross profit and profit margin percentage from revenue and cost.
Results are provided for general informational use. Verify important financial, health or legal figures before relying on them.
About this Profit Margin Calculator
The Profit Margin Calculator compares revenue with cost to show both the profit amount and the percentage of revenue retained as profit. It can help with quick pricing reviews, product comparisons and business planning.
For related tasks, try Markup Calculator, Discount Calculator or Break-Even Calculator.
How the calculation works
Profit equals revenue minus cost. Profit margin is profit ÷ revenue × 100. This is a simple gross calculation and does not automatically include taxes, overhead or other expenses unless you include them in cost.
How to use it
- Enter total revenue or selling price.
- Enter the associated total cost.
- Calculate to see profit and profit margin.
Practical example
Revenue of 1,000 with cost of 700 produces profit of 300 and a 30% margin.
Frequently asked questions
Is margin the same as markup?
No. Margin is based on selling revenue, while markup is based on cost.
Can the margin be negative?
Yes. If cost exceeds revenue, the result is a negative margin.
Does this calculate net profit?
Only if the cost input already includes every expense you want to treat as a cost.
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