Business & Marketing

Profit Margin Calculator

Enter revenue and cost to see profit, margin and markup together.

By TheCalcTools Updated Formula checked and tested

Your numbers

Symbol only: enter amounts in the currency you pick.
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Your results

Profit
Profit
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Profit margin
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Markup
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Profit Margin Calculator by TheCalcTools

How the Profit Margin Calculator works

Enter total revenue and the total cost of producing it.

Profit is revenue minus cost.

Margin divides profit by revenue; markup divides profit by cost.

The formula

Profit = revenue − costMargin = profit ÷ revenue × 100

Worked example

Using the default values shown in the calculator:

Revenue$12000
Cost$8400
  1. Profit = $12,000 − $8,400 = $3,600.00.
  2. Margin = 3,600 ÷ 12,000 = 30.00%.
  3. Markup = 3,600 ÷ 8,400 = 42.86%.

Result:

Profit$3,600.00
Profit margin30.00%
Markup42.86%

Frequently asked questions

Margin or markup: what is the difference?

Margin is a share of the selling price, markup is a share of cost. A 50% markup equals a 33.3% margin.

What is a good profit margin?

It varies widely by industry. Retail often runs single digits to 10%, software can exceed 70%. Compare with businesses like yours.

Sources and further reading

Markup and Margin CalculatorMarkup and margin are not the same thing Break-Even CalculatorWork out the sales volume where profit is exactly zero Selling Price CalculatorSet a margin goal and get the price that delivers it Discount CalculatorEnter a price and a percentage off to see what you pay Contribution Margin CalculatorEnter the price, variable cost per unit, units sold and fixed costs Price Elasticity of Demand Calculator (Midpoint Method)Enter the old and new price and the quantity sold at each

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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.