Profit Margin Calculator
Calculate your profit, profit margin, and markup with ease. Enter your revenue and costs to understand how much your business earns from every sale and make more informed pricing decisions.
Calculate directly in your browser. No account required.
Profit Margin Calculator
Enter your sales and costs to get your results.
Profit = Revenue − Total Cost
Your Results
Waiting for inputResults depend on the figures entered. This tool is for general business calculations and is not tax or accounting advice.
Know What Your Business Really Earns
A business can generate strong sales without keeping much profit. Knowing your margin helps you see how revenue compares with the money spent to deliver a product or service.
Turn sales figures into useful insights
The Profit Margin Calculator helps business owners, freelancers, online sellers, and service providers estimate profitability using revenue and total costs. Instead of looking at sales alone, you can see the share of revenue remaining after your selected costs are deducted.
Use the result to review product prices, compare sales periods, estimate the impact of changing expenses, or identify where costs may be reducing your earnings. For a meaningful comparison, use consistent cost definitions and the same reporting period.
Explore the basics of profit margin
Why Use This Profit Margin Calculator?
Get a clearer view of your business numbers without manual calculations.
See Your Profit Clearly
Find the difference between your revenue and selected costs in seconds.
Calculate now →Understand Your Margin
Measure profit as a percentage of revenue to put sales results into context.
View formula →Compare Margin and Markup
See how profit measured against revenue differs from profit measured against cost.
Learn the difference →Make Faster Estimates
Test different revenue and cost figures when reviewing a pricing decision.
See an example →Profit Margin Formula
Profit margin expresses profit as a percentage of revenue. First calculate the profit amount, then divide it by revenue.
Calculate Profit
Subtract the costs included in your analysis from total revenue.
Calculate Profit Margin
Divide profit by revenue and multiply by 100 to express the result as a percentage.
Calculate Markup
Compare profit with cost to see how much it exceeds the cost base.
Margin uses revenue as the denominator; markup uses cost. A zero revenue figure makes the margin undefined, while a zero cost figure makes the markup undefined. Negative profit indicates a loss for the costs entered.
How to Calculate Profit Margin
Imagine your business sells a product for $1,000 and the total costs you want to include are $650. The difference is your profit. You can then compare that profit with revenue to calculate the margin.
Try these same figures in the calculator above to check each result.
Try These NumbersCalculation: ($1,000 − $650) ÷ $1,000 × 100 = 35%.
Profit Margin vs. Markup
Both metrics describe profit in relation to another value, but they answer different questions. Using the correct one helps you price products and interpret business performance more accurately.
Profit Margin
Shows how much of your revenue remains as profit.
$350 profit ÷ $1,000 revenue = 35% margin
Markup Percentage
Shows how much profit is added relative to cost.
$350 profit ÷ $650 cost = 53.85% markup
In this example, the same $350 profit produces a 35% margin and a 53.85% markup. The difference comes from the denominator used.
For another explanation, read this guide to markup and profit margin .
Practical Ways to Improve Profitability
A margin figure is a starting point for analysis, not a complete explanation of business performance.
Review Your Full Cost Picture
Include the relevant direct and operating expenses for the type of margin you want to measure. Missing costs can make a result look stronger than it really is.
Test Different Price Points
Compare alternative prices and costs before changing your pricing. Consider customer demand, competitor offers, and the value you deliver.
Compare Like With Like
Use the same time period and cost categories when comparing products, months, or sales channels.
Track Trends Over Time
Monitor whether margins improve or shrink, then investigate changes in prices, supplier costs, returns, and overheads.
Profit Margin Calculator FAQs
Quick answers to common questions about profit, margin, and markup.
What is a profit margin?
Profit margin is the percentage of revenue left as profit after subtracting the costs included in the calculation. A 35% margin means $35 of profit for every $100 in revenue, based on those costs.
How do I calculate profit margin?
Subtract total costs from revenue to find profit. Then divide profit by revenue and multiply by 100. For example, $350 profit on $1,000 revenue equals a 35% profit margin.
What is the difference between gross and net profit margin?
Gross profit margin typically measures revenue remaining after the cost of goods sold. Net profit margin measures the profit remaining after all expenses included in net income, such as operating expenses, interest, and taxes.
Can a profit margin be negative?
Yes. If the costs included are greater than revenue, the result is a loss and the profit margin is negative. Review your cost inputs and reporting period before interpreting the result.
Is profit margin the same as markup?
No. Profit margin divides profit by revenue, while markup divides profit by cost. The percentages are usually different even when they describe the same sale.
What is a good profit margin?
There is no single ideal margin for every business. Results vary by industry, business model, operating costs, and risk. Compare your margin with relevant competitors and your own historical results.
Does this calculator include taxes automatically?
No. Enter the costs you want to measure. If you need a net profit margin, include the relevant expenses, interest, and taxes in your total costs before calculating.
Can I use this tool for product pricing?
Yes. You can test a product's selling price and cost to estimate its profit and margin. Treat the result as a pricing input and also consider demand, fees, returns, and other business expenses.
Ready to Understand Your Profit?
Enter your revenue and costs to calculate your profit margin and get a clearer picture of your business performance.
Calculate Your Margin