Profit Margin Calculator
Calculate your gross profit and profit margin percentage from revenue and cost. Useful for pricing products, services or entire business lines.
How to use the Profit Margin Calculator
Enter your total revenue (the price you sell at, or total sales).
Enter your total cost (what it cost you to produce or acquire the product or service).
The calculator shows your gross profit in currency and your profit margin as a percentage.
Profit Margin Formula
Profit Margin (%) = (Revenue − Cost) ÷ Revenue × 100Example
- 1.Revenue: $120
- 2.Cost: $80
- 3.Profit = $120 − $80 = $40
- 4.Margin = $40 ÷ $120 × 100 = 33.3%
Frequently Asked Questions
Frequently asked questions about the Profit Margin Calculator
What is the difference between margin and markup?+
Margin is profit as a percentage of the selling price (revenue). Markup is profit as a percentage of the cost. The two numbers are always different for the same sale — see our Markup Calculator to convert between them.
What is a healthy profit margin?+
It varies widely by industry. Retail margins are often 20–50%, while software and services can exceed 70%. Compare your margin to others in your specific industry.