Calculate
Profit Margin Calculator
Calculate gross profit and margin percentage from revenue and cost.
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Last reviewed: 2026-11-09. Methodology: formulas use your inputs only — no hidden fees or market data APIs. Results are estimates for planning, not professional advice.
Basic
What it is & how to use it
Gross profit = revenue − cost of goods. Gross margin % = gross profit ÷ revenue × 100. Margin is profit as a percentage of revenue — not the same as markup.
How to use the Profit Margin Calculator
1) Enter revenue (selling price or period revenue).
2) Enter cost.
3) Read profit and margin % live.
4) Compare products using the same cost definitions.
Intermediate
Formula & worked example
Margin % = (Revenue − Cost) ÷ Revenue × 100.
Worked example: $75 revenue, $50 cost → profit $25 → 33.3% margin.
A 50% markup on $50 cost sells at $75 — that is 33.3% margin, not 50%.
Advanced
Interpretation, edge cases & next steps
Align language with finance: sales often says markup; reports use margin.
Advanced: watch fees, returns and tax treatment; use markup calculator side by side; see worked examples guide.
Estimates for planning — not tax or accounting advice.
Go deeper: Margin vs Markup Worked Examples · Profit Margin vs Markup: What’s the Difference?
Frequently asked questions
Margin vs markup?
Margin is profit ÷ revenue; markup is profit ÷ cost.
Can margin be over 100%?
Not with positive cost and revenue under this gross formula.
Include VAT in revenue?
Be consistent — do not mix tax-inclusive and tax-exclusive figures.
Is this net margin?
This tool focuses on gross-style inputs you enter; overhead is separate.
Do you store numbers?
Inputs stay in-session / share URL only.
Deep guide
Read the full guide
Longer teaching, worked scenarios and mistakes — then jump back into this tool with example numbers.