Profit Margin Calculator
Calculate profit, margin, revenue, or cost. Enter any two fields to solve the rest. It’s useful for pricing, e-commerce, service quotes, and basic business planning.
Inputs
$
$
$
%
Result
Cost$50.00
Revenue$100.00
Profit$50.00
Margin50%
Markup100%
Solved from cost and revenue.
Margin is profit as a % of revenue. Markup is profit as a % of cost.
How to use it
- Enter any two fields (cost, revenue, profit, or margin %).
- Leave the others blank and the calculator will solve them.
- Review both profit dollars and margin percentage.
- Use the margin vs markup notes if you’re pricing products.
Key formulas
- Profit
- Profit = Revenue − Cost
- Margin %
- Margin % = (Profit / Revenue) × 100
- Markup %
- Markup % = (Profit / Cost) × 100
FAQ
Margin is profit as a percent of revenue. Markup is profit as a percent of cost. They’re not the same number.
A common formula is: selling price = cost ÷ (1 − margin%). For example, with $50 cost and a 40% margin target, price = 50 ÷ 0.60 = $83.33.
It depends on the industry, competition, and costs. Use margin to compare products and scenarios, not as a universal score.
Yes if they affect your profit. Include payment processing fees, shipping, packaging, discounts, and expected returns in cost to make the margin more realistic.
They use different denominators. Margin uses revenue; markup uses cost. A 50% markup equals a 33.33% margin.
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Disclaimer
Estimates only. Your true margin depends on all costs (fees, shipping, taxes, returns, overhead). Verify with your accounting data.