Calculators & Converters
Profit Margin Calculator
The Profit Margin Calculator works out your gross profit in currency, your profit margin as a percentage of revenue, and your markup as a percentage of cost -- all from just two numbers.
It's useful for quickly checking whether a price is profitable enough before finalizing it.
How to Use the Profit Margin Calculator
- Open the Profit Margin Calculator.
- Enter your revenue (selling price).
- Enter your cost.
- Read the profit amount, margin percentage and markup percentage.
Frequently Asked Questions
What's the difference between margin and markup?
Margin is profit as a percentage of revenue (selling price), while markup is profit as a percentage of cost. They're always different numbers for the same sale unless cost is zero.
What's a healthy profit margin?
This varies enormously by industry -- retail margins are often much thinner than software or services margins. This tool just does the math; the target is up to you.
Can revenue or cost be zero?
Cost can be zero (the tool will just show 0% markup), but if revenue is zero the margin percentage isn't meaningful and will show as 0%.