Profit Margin Calculator
Calculate profit, profit margin and markup from your revenue and cost — with optional operating, marketing, payroll and tax lines for gross, operating and net views.
Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.
Profit margin
Enter revenue greater than zero to calculate profit margin.
What is a profit margin calculator?
A profit margin calculator turns revenue and cost into profit, profit margin and markup. It is the quickest way to see how much of each sale you actually keep, and to avoid the classic mistake of confusing margin with markup.
How is profit margin calculated?
- Profit = Revenue − Cost
- Profit margin = Profit ÷ Revenue × 100
- Markup = Profit ÷ Cost × 100
Add operating expenses, marketing, payroll and taxes to also see operating and net margins.
Margin vs markup
This distinction matters. Margin measures profit against the selling price; markup measures it against cost. A product bought for $6 and sold for $10 has a $4 profit — that is a 40% margin but a 66.7% markup. Pricing from markup when you mean margin leaves money on the table. For the reverse (setting a price for a target margin) use the product pricing calculator.
Example
Revenue of $10,000 with $6,000 of cost gives $4,000 profit, a 40% margin and a 66.67% markup.
Related calculators
See gross margin for the COGS-only view, contribution margin for per-unit economics, and the business profit calculator for a full P&L.
Frequently asked questions
What is profit margin?
Profit margin is profit expressed as a percentage of revenue. Profit = revenue − cost, and profit margin = profit ÷ revenue × 100.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A 40% margin equals a 66.7% markup on the same numbers. Confusing the two leads to underpricing.
How do you calculate profit margin?
Subtract cost from revenue to get profit, then divide profit by revenue and multiply by 100. For $10,000 revenue and $6,000 cost, profit is $4,000 and margin is 40%.
What is a good profit margin?
It varies widely by industry and business model. Software often has very high margins; retail and food service run thin. Compare to peers and track the trend rather than chasing a universal number.
Related calculators
Gross Margin
Calculate gross profit and gross margin, or solve in reverse.
Contribution Margin
Work out contribution margin per unit, % and break-even units.
Business Profit
Turn revenue and expenses into gross, operating and net profit with clear margins and a visual breakdown.
Product Pricing
Find a profitable selling price from costs, fees, ads and target margin.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Results are estimates based on the revenue and costs entered.