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Profit Margin Calculator

Turn revenue and cost into profit margin, profit, and markup.

Use a consistent reporting periodCheck the calculation below

Your business figures

Runs on your device

METRIC SNAPSHOT

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter revenue, cost.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

Profit = revenue − cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100.

A WORKED EXAMPLE

Revenue of 1,000 and cost of 650 give a profit of 350, a 35% margin and about 53.85% markup.

What to keep in mind

Use the same accounting period and currency for both amounts. The result is gross or net margin depending on which costs you include.

Common questions

Why are margin and markup different?

Margin divides profit by revenue. Markup divides the same profit by cost. They use different bases.

Can margin be negative?

Yes. If costs exceed revenue, profit and margin are negative. Zero revenue has no defined percentage margin.

Methodology maintained by ClarityKit. How these tools are built and checked.