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PROFIT MARGIN

Profit Margin Calculator

Calculate profit margin, revenue, cost, and profit from any two of those values. Everything runs in your browser and nothing is sent to a server.

Any two inputsPlain-language answerNo accountNot financial advice

Enter any two of the values below. The calculator derives the rest.

Profit margin

40%

Revenue
$100
Cost
$60
Profit
$40
Margin
40%

On $100 of revenue with $60 of cost, profit is $40 and the margin is 40%

Formula

Profit
Profit = Revenue − Cost
Profit margin (%)
Margin = (Profit ÷ Revenue) × 100
  • Enter any two of revenue, cost, profit, or margin percentage. The calculator derives the rest.
  • When revenue is zero, the margin percentage cannot be calculated (division by zero).
  • A negative margin means cost exceeds revenue.

Margin versus markup

Margin and markup are related but different. Margin is profit divided by revenue; markup is profit divided by cost. A 50% margin means half of revenue is profit. A 50% markup means profit is half of cost, which is a 33.3% margin. Mixing them up is one of the most common pricing mistakes. Use the markup calculator for the other measure.

How to calculate profit margin

Subtract cost from revenue to get profit, then divide profit by revenue and multiply by 100. For example, if you sell a product for $100 and it costs $60, profit is $40 and the margin is 40%. This calculator does that math and also solves in reverse: enter margin and revenue to get cost, for instance.

Common pricing mistakes

Common mistakes include confusing margin with markup, applying a discount to the wrong base, and forgetting that margin shrinks as discounts grow. Always confirm which measure a contract or report is asking for before quoting or filing numbers.

Frequently asked questions

What is profit margin?
Profit margin is profit divided by revenue, expressed as a percentage: (Profit ÷ Revenue) × 100. It shows what share of revenue remains after the cost of goods sold.
What is the difference between margin and markup?
Margin divides profit by revenue. Markup divides profit by cost. A 50% margin is not the same as a 50% markup. See the markup calculator for the other measure.
Why does the calculator say the margin is negative?
When cost exceeds revenue, profit is negative and so is the margin. The calculator shows the negative value and a note explaining the loss.
Is this gross or net margin?
This calculator computes a simple margin from revenue and cost. It does not separate gross, operating, or net margin, and it does not account for taxes, overhead, or other expenses.
Is this accounting or financial advice?
No. This is a general-purpose calculator and is not accounting, tax, financial, legal, or business advice.

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No account. No ads. No tracking. Your calculation inputs stay in your browser and are not sent to WebF1 or stored on a server.

Built by WebF1 LLC

WebF1 LLC builds custom business systems, integrations, and practical software tools. This margin calculator is a free, private utility and is not accounting, tax, financial, legal, or business advice.
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