Profit Margin Calculator

Calculate margin and markup from revenue and cost. Useful for pricing, business, and product profitability checks.

Formula

Profit margin compares profit to revenue. Markup compares profit to cost.

profit = revenue - cost margin% = profit ÷ revenue × 100 markup% = profit ÷ cost × 100

Short, practical answers for this calculation.

It depends on industry, costs, and business model. This calculator only performs the math.

They use different denominators. Margin divides by selling price; markup divides by cost.

Gross margin cannot exceed 100% if cost is non-negative, because profit cannot exceed revenue in that simple setup.

Usually margin is calculated before sales tax or VAT, but accounting practices vary.

Keep the topic tight: discounts, tax, VAT, markup, tips, grades, and percentage change.

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