Profit margin calculator
Find profit, margin and markup from revenue and cost.
Enter your values and press Calculate. Your inputs stay in the address, so you can switch language or share the link.
Formula
profit = revenue − cost margin = profit ÷ revenue × 100 markup = profit ÷ cost × 100
How it works
Profit is revenue minus cost. Margin divides profit by revenue; markup divides it by cost, so for the same profit the markup is always the larger number.
Worked example
The same calculation with the default values:
- Revenue (selling price) 135
- Cost 100
- profit = 135 − 100 = 35
- margin = 35 ÷ 135 × 100 = 25.925926%
- markup = 35 ÷ 100 × 100 = 35%
Result: Profit: 35.00 USD · Profit margin (on revenue): 25.93% · Markup (on cost): 35%
Shows both margin (profit as a percentage of revenue/selling price) and markup (profit as a percentage of cost) from the same numbers - these are genuinely different percentages for the same transaction, not two names for the same thing.
Common mistakes
- Treating margin and markup as the same percentage - a 50% markup on cost is only a 33.3% margin on revenue, not 50%; mixing them up leads to under- or over-pricing.
- Using revenue (total sales) when the formula needs net revenue after returns and discounts - gross sales figures inflate the apparent margin.
- Comparing margin percentages across businesses in very different industries - a healthy margin for a grocery store and for a software company can differ by tens of percentage points for structural reasons, not performance.
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