About profit margin
This calculator turns a revenue figure and a cost figure into your gross profit, your profit margin and your markup. Margin and markup are easy to confuse: margin measures profit against the selling price, while markup measures the same profit against the cost. It runs in your browser; nothing is uploaded.
How Profit Margin works
The formula
Gross profit = revenue − cost. Profit margin % = (profit ÷ revenue) × 100. Markup % = (profit ÷ cost) × 100.
Worked example
Revenue 100, cost 60: profit = 100 − 60 = 40. Margin = 40 ÷ 100 = 40%. Markup = 40 ÷ 60 = 66.7%. Same profit, two different percentages — that is why margin and markup are never equal.
Common uses
- Find profit margin from revenue and cost
- Convert markup to margin
- Price products for a target margin
- Compare margin and markup
- Check gross profit on a sale
- Work out percentage profit
- Cost a service or job
- Sanity-check supplier pricing
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. A 40% margin equals a 66.7% markup.
How do I calculate profit margin?
Subtract cost from revenue, divide by revenue, then multiply by 100.
Can margin be over 100 percent?
No — margin maxes out below 100% because profit can never exceed revenue. Markup, however, can exceed 100%.
Is this gross or net margin?
Gross — it uses direct cost only, not overheads, tax or other expenses.
Is my data uploaded?
No — everything is calculated in your browser.
Is it free?
Yes, completely free with no sign-up.