Profit Margin Calculator
Calculate your profit, profit margin, and markup from cost and revenue. Essential for pricing products, evaluating deals, and understanding your business profitability.
Formula reviewed for accuracy. Our methodology & sources
Profit Margin Calculator
business calculator
How It Works
The calculator subtracts cost from selling price to find the profit on each sale, then shows that profit two ways. Margin divides profit by the selling price, telling you what share of each dollar of revenue you keep; markup divides the same profit by the cost, telling you how much you added on top of what you paid. They are easy to confuse, and the gap matters: a healthy-sounding markup can hide a much thinner margin.
Formula
Profit = Revenue − Cost Margin = Profit / Revenue × 100 Markup = Profit / Cost × 100
Examples
Cost $60, sell for $100
$40 profit, 40% margin, 67% markup.
Frequently Asked Questions
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 $60 item sold for $100 has a 40% margin but a 67% markup.
What is a good profit margin?
It varies by industry. Retail often runs 5-10%, software can exceed 70%, and restaurants typically see 3-9%. A 10%+ net margin is generally considered healthy.
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