Business
Profit Margin Calculator
- Browser-based
- No signup
Enter cost and revenue to calculate profit, profit margin, and markup. Results are educational estimates.
100% Client-Side
Your data never leaves your computer.
How to use this tool
1. Enter cost (what you paid to produce or buy the item). 2. Enter revenue (selling price or sales total). 3. Click Calculate. 4. Read profit dollars, margin %, and markup % in the results. 5. Compare margin vs markup—25% markup is not the same as 25% margin.
Worked example
Example: cost $60 and revenue $100 → $40 profit, 40% margin (40 ÷ 100), and 66.67% markup (40 ÷ 60).
How it works
Calculates gross profit (revenue minus cost), profit margin percent (profit ÷ revenue), and markup percent (profit ÷ cost). Useful for pricing reviews and P&L checks. Does not include operating expenses, taxes, or channel fees.
Limitations
Results are estimates for educational purposes and are not financial advice.
Privacy and file handling
Your data is processed in your browser and is not uploaded to our server.
Formula or method
Profit = revenue − cost. Margin % = (profit ÷ revenue) × 100. Markup % = (profit ÷ cost) × 100.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by revenue. Markup is profit divided by cost—the same profit yields a higher markup percent than margin percent.
Which percent should I use for pricing decisions?
Retailers often target a margin percent on selling price. Cost-plus pricing often starts with a markup on cost. Use Margin vs Markup Calculator to convert a target into a selling price.
Does this include operating expenses?
No. Enter direct cost and revenue for gross profit only. Rent, payroll, and taxes are not subtracted.
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