What is profit margin?

Profit margin indicates the profitability of a product, service, or business. It's expressed as a percentage; the higher the number, the more profitable the business.

How do you calculate gross profit margin?

To calculate gross profit margin: (Revenue - Cost) ÷ Revenue × 100. For example, if revenue is $100 and cost is $60, the margin is (100-60)÷100×100 = 40%.

What's the difference between margin and markup?

Margin is profit as a percentage of revenue, while markup is profit as a percentage of cost. A 50% markup equals a 33.33% margin.

How do you calculate a 20% profit margin?

To achieve a 20% profit margin: divide your cost by 0.8. For example, if cost is $80, sell for $80÷0.8 = $100.

💰 Margin Calculator

Calculate profit margin, markup, cost and revenue from any two values

Enter any two values to automatically calculate the remaining values

Input Values

Cost ($)

Revenue ($)

Profit ($)

Markup (%)

Results

Profit Margin

--%

Cost

$--

Revenue

$--

Profit

$--

Markup

--%

How to Use the Margin Calculator

Basic Steps

Enter any two known values (cost, revenue, profit, or markup)
The calculator will automatically compute the remaining values
View your profit margin percentage and other metrics
Use the reset button to clear all fields

Key Formulas

Profit Margin: (Profit ÷ Revenue) × 100
Markup: (Profit ÷ Cost) × 100
Profit: Revenue - Cost
Revenue: Cost + Profit

Frequently Asked Questions

Disclaimer

This calculator is for informational purposes only and does not constitute financial advice. The accuracy of calculations depends on the accuracy of input data. Please consult with financial professionals for business decisions.