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Utilnivo

Business

Utilnivo

Profit Margin Calculator

Calculate profit, margin percent, and markup percent.

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  • On your device

Browse more in Business or all tools.

Private on your device

Your information stays on your device and is not uploaded.

Enter cost and revenue to calculate profit, profit margin, and markup. Results are educational estimates.

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 stays on your device and is not uploaded.

Formula or method

Profit = revenue − cost. Margin % = (profit ÷ revenue) × 100. Markup % = (profit ÷ cost) × 100.

FAQ

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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