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Profit Margin Calculator

Calculate profit, profit margin percentage, and markup percentage from cost and revenue.

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Version 1.0.0 · Last reviewed

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Result

Live output from your inputs

Enter values and calculate to see results.

How it worksShow guide

Introduction

Measure how much of each sale becomes profit. This calculator shows profit, margin %, and markup % from cost and revenue.

Formula

Profit margin is profit as a share of revenue. Markup is profit as a share of cost. They are related but not the same.

Margin%=RCR×100Markup%=RCC×100\mathrm{Margin\%} = \frac{R-C}{R}\times 100\quad\mathrm{Markup\%} = \frac{R-C}{C}\times 100
  • R Revenue (selling price)
  • C Cost

Step-by-step

  1. Enter the cost (COGS or total cost).
  2. Enter revenue or selling price.
  3. Profit = revenue − cost; margin = profit ÷ revenue × 100.

Worked example

Cost $40 and revenue $50 yields $10 profit, 20% margin, and 25% markup.

Use cases

  • Price a product against target margin
  • Compare margin vs markup on a quote
  • Check unit economics quickly

Frequently asked questions

Margin vs markup — which should I use?

Margin is relative to selling price; markup is relative to cost. Retail often quotes markup; finance reports usually quote margin.

Can margin be negative?

Yes — if cost exceeds revenue, you are selling at a loss.

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Version 1.0.0 · Last updated: