Profit Margin Calculator

Calculates profit and profit margin percentage from a revenue figure and a cost figure. Margin expresses profit as a percentage of revenue — a different figure from markup, which expresses the same profit as a percentage of cost.

Enter your revenue and your cost for the same period or the same sale. Results update immediately and show profit and profit margin percentage to two decimal places, without a currency symbol — use one currency consistently for both inputs.

With the defaults of 1,000 revenue and 700 cost, profit is 300.00 and profit margin is 30.00% — 30% of every dollar of revenue is profit.

Profit margin % = (revenue − cost) ÷ revenue × 100. Profit = revenue − cost. This is gross margin when cost includes only the direct cost of the product or service sold; it becomes net margin if cost includes every business expense for the period.

These two percentages describe the same profit using different denominators and are easy to mix up. 300 profit on 1,000 revenue is a 30% margin, but that same 300 profit on 700 cost is a 42.86% markup. Neither number is wrong — they answer different questions, so check which one a target or benchmark you're comparing against actually means.

Revenue must be a positive number; the tool doesn't calculate a result for zero or negative revenue, since margin is undefined when dividing by zero. Cost can exceed revenue, producing a negative profit and margin — the tool doesn't flag that as an error, since it's a valid way to check how much a loss-making sale or period actually lost.

What counts as "cost" depends entirely on what you enter — this tool doesn't know whether you've included cost of goods sold only, or also overhead, salaries, and other operating expenses, so the result is only as meaningful as the cost figure behind it. Calculations run locally in your browser; the values you enter are never uploaded.