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Profit Margin Calculator: Margin from Revenue and Cost

Enter what you sell for and what it costs you to see your margin, profit and markup.

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Formula

  • Profit = revenue − cost
  • Margin % = profit ÷ revenue × 100
  • Markup % = profit ÷ cost × 100

Worked example

Revenue 250 and cost 175:

  • Profit: 250 − 175 = 75
  • Margin: 75 ÷ 250 = 30%
  • Markup: 75 ÷ 175 = 42.86%

Frequently asked questions

How do I calculate profit margin?

Profit margin = (revenue - cost) ÷ revenue × 100. With revenue 100 and cost 80, profit is 20 and margin is 20%.

What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of cost. The same 20 profit on 100 revenue is a 20% margin and a 25% markup.

Can the margin be negative?

Yes. If you sell for 80 what cost 100, profit is -20 and the margin is -25%.

Why does the calculator reject a cost of zero?

Markup divides profit by cost, and dividing by zero is undefined. Enter a cost above zero.

How we calculate

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