Online Percent Calculator Logo

Profit Margin Calculator

Determine the profitability of a product or service. Enter your cost and selling price (revenue) to find the profit margin.

Calculate gross profit margin percentage

Quick Answer

Profit margin shows what percentage of revenue remains as profit after costs, helping businesses measure pricing efficiency and profitability.

Margin Calculator

Related Business & Marketing Calculators

Markup Calculator

Determine the markup percentage based on your cost and selling price, or...

CALCULATE

Population Growth Calculator

Determine the percentage growth of any population over a specific period. Ideal...

CALCULATE

Profit Growth Calculator

Analyze your bottom line. Determine the percentage growth of your net profit,...

CALCULATE

Property Value Increase Calculator

Track the growth of your most valuable asset. Determine the percentage increase...

CALCULATE

Sales Growth Calculator

Measure business momentum. Calculate month-over-month or year-over-year sales growth percentages instantly.

CALCULATE

How It Works

  1. Enter the cost of the goods or service.
  2. Enter the revenue (selling price).
  3. Click 'Calculate' to see the profit margin.

Formula:

Margin % = ((Revenue - Cost) ÷ Revenue) × 100

Margin vs Markup

Margin calculates profit as a percentage of the selling price. (Best for analyzing profitability)

Markup calculates profit as a percentage of the cost. (Best for setting prices)

Example: Buy for $50, Sell for $100.

  • Profit = $50
  • Margin = $50 / $100 = 50%
  • Markup = $50 / $50 = 100%

Examples

Revenue 100, Cost 70

Result: 30%

Revenue 250, Cost 200

Result: 20%

Revenue 50, Cost 25

Result: 50%

Revenue 200, Cost 150

Result: 25%

Revenue 100, Cost 80

Result: 20%

Frequently Asked Questions

Is margin the same as markup?

No. Margin is Profit divided by Revenue. Markup is Profit divided by Cost. Margin is always lower than Markup for positive profits.

Can margin exceed 100%?

No, because profit cannot be greater than revenue (unless cost is negative, which is unlikely in standard business).

Can margin be negative?

Yes. If your cost is higher than your revenue (selling at a loss), your margin will be negative.

Is a higher margin always better?

Generally yes, as it means more profit per dollar of revenue. However, high margins might reduce sales volume.

What is a good profit margin?

It varies by industry. Grocery stores might have 2% margins, while software companies might have 80% margins.

Related Articles