💹 Profit Margin Calculator
Enter your revenue and cost to calculate your profit margin as a percentage — a key number for pricing and business decisions.
How the Profit Margin Calculator works
Profit margin is calculated as (revenue minus cost) divided by revenue, expressed as a percentage — it shows what share of each sales dollar is profit.
Step-by-step calculation
- 1Enter revenue (selling price).
- 2Enter cost.
- 3Subtract cost from revenue for profit.
- 4Divide profit by revenue.
Worked example
Selling for $50 with a $30 cost: margin = 20 ÷ 50 = 40%.
Profit Margin Calculator examples
| Revenue ($) | Profit margin |
|---|---|
| 75 | -20.0% |
| 113 | 20.4% |
| 150 | 40.0% |
| 188 | 52.1% |
| 225 | 60.0% |
Other inputs kept at the calculator's default values. Results calculated by this calculator.
Why use a Profit Margin Calculator?
Know how much of each sale is real profit.
Important factors that can affect your results
- Gross vs net margin (net includes all expenses).
- Discounts and returns.
- Shipping and payment fees.
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. They're related but not the same number.
What's a "good" profit margin?
This varies enormously by industry — retail, services, and software businesses typically have very different healthy ranges.
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Last reviewed November 2026 · How we build and check our tools · Report a problem