Profit Margin Calculator
Calculate profit margin, markup and revenue
Profit Margin Calculator takes your revenue and cost and returns three numbers that are easy to confuse but mean different things: the raw profit, the margin (profit as a percentage of revenue), and the markup (profit as a percentage of cost).
How to use Profit Margin Calculator
- 1
Enter your revenue.
- 2
Enter your cost.
- 3
Profit, margin percentage, and markup percentage are calculated instantly.
- 4
Use margin or markup depending on which framing you need.
Everything you need to know about profit margin
Margin vs. markup — a common mix-up
Margin is profit as a percentage of the *selling price*; markup is profit as a percentage of the *cost*. The same numbers produce different percentages depending on which one you calculate — a 50% markup is not the same as a 50% margin, which trips up pricing decisions more often than you'd expect.
When you actually need this
- Setting a price that hits a target margin, working backward from cost.
- Comparing profitability across products with different cost structures.
Related Calculators
BMI Calculator
Calculate Body Mass Index with health range indicators
Age Calculator
Calculate exact age in years, months and days from birthdate
Loan / EMI Calculator
Calculate monthly EMI, total interest and amortization schedule
Mortgage Calculator
Calculate monthly mortgage payments, total interest paid
GST / VAT Calculator
Calculate GST and VAT inclusive and exclusive amounts
Percentage Calculator
Calculate percentages, increases, decreases and ratios
Frequently Asked Questions
What's the actual difference between margin and markup?
Margin divides profit by revenue (what percentage of what you sold for is profit); markup divides profit by cost (how much you added on top of cost). The same numbers produce two different percentages, and mixing them up is a common pricing mistake.
Why does markup show as blank or unavailable sometimes?
Markup is profit divided by cost, so if cost is 0 there's nothing to divide by — markup isn't shown in that case, though profit and margin still calculate normally.
Can revenue or cost be negative?
No — revenue must be a positive number and cost can't be negative, since both represent real amounts of money in a sale.
Does this tool send my numbers to a server?
Yes — your figures are sent to our servers to compute the result and the result is returned to you; we don't store the values.
Is this tool free to use?
Yes — completely free, with no signup and no usage limits for casual use.