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Profit Margin Calculator

Find gross profit as a share of revenue.

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Formula / Calculation Method

Profit = revenue − cost; margin = profit / revenue × 100.

Example Calculation

Revenue of 100 and cost of 60 produce a 40% margin.

Understanding the Result

This is gross margin for the costs entered, not necessarily net profit after all expenses.

What is the Profit Margin Calculator?

Find gross profit as a share of revenue.

How to Use

Enter revenue and the associated cost. Revenue must be greater than zero.

Select Calculate after entering your values. Text tools update as you type. Reset restores the starting fields.

Interpreting the Calculation

Margin describes the share of revenue remaining after the entered cost. If costs exceed revenue, the negative margin indicates a loss. Include the right costs for the type of margin you want to analyze.

Common Questions

Why is margin lower than markup?

For a profitable sale, revenue is larger than cost. Dividing the same profit by revenue gives a smaller percentage.

What assumptions does this tool use?

This is gross margin for the costs entered, not necessarily net profit after all expenses.

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