Finance Calculators
Profit Margin Calculator
Calculate profit, profit margin and markup from revenue and cost.
Free foreverRuns in your browserNo sign-up
Profit margin
40%
$400.00
Profit
40%
Margin
66.67%
Markup
Margin is profit as a share of revenue, while markup is profit as a share of cost. Margin is always the smaller of the two for a profitable sale.
About the Profit Margin Calculator
The Profit Margin Calculator finds your profit and expresses it in two useful ways: profit margin and markup.
Profit is revenue minus cost. Profit margin is profit as a percentage of revenue, while markup is profit as a percentage of cost.
Margin and markup are often confused but always differ. For the same sale, margin is the smaller percentage. All maths runs in your browser.
Key features
- Profit, margin and markup
- Clear margin versus markup distinction
- Handles a loss when cost exceeds revenue
- Locale-aware currency formatting
How to use
- 1Enter the revenue or selling price and choose a currency.
- 2Enter the cost.
- 3Read the profit, margin percentage and markup percentage.
Frequently asked questions
- What is the difference between margin and markup?
- Margin is profit divided by revenue, while markup is profit divided by cost. Markup is always the larger percentage for a profitable sale.
- How is profit margin calculated?
- Subtract cost from revenue to get profit, then divide by revenue and multiply by 100 for the margin percentage.
- Can the margin be negative?
- Yes. If the cost is greater than the revenue, the profit and margin are negative, indicating a loss.