Profit Margin Calculator
Calculate your profit and profit margin percentage from cost and revenue.
Profit Margin Calculator
Your Result
How Profit Margin Is Calculated
Profit margin measures how much of your revenue is actual profit, expressed as a percentage of the selling price (not the cost). It's one of the most-watched numbers in business because it shows pricing and cost efficiency at a glance.
Formula
Profit margin % = (Revenue − Cost) ÷ Revenue × 100
Frequently Asked Questions
What's a good profit margin?
It varies widely by industry, retail often runs 20-50%, software can be 70%+, while grocery and wholesale margins can be in the single digits. Compare against your specific industry.
Is this gross margin or net margin?
This calculates gross margin (revenue minus direct cost of the item). Net margin would also subtract overhead, taxes, and other operating expenses.
How is margin different from markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. See our Markup Calculator to convert between the two.