Profit Margin Calculator

Introduction

Measure how much of each sale becomes profit. This calculator shows profit, margin %, and markup % from cost and revenue.

Formula

Profit margin is profit as a share of revenue. Markup is profit as a share of cost. They are related but not the same.

• R — Revenue (selling price)
• C — Cost

Step-by-step

1. Enter the cost (COGS or total cost).
2. Enter revenue or selling price.
3. Profit = revenue − cost; margin = profit ÷ revenue × 100.

Worked example

Cost $40 and revenue $50 yields $10 profit, 20% margin, and 25% markup.

Use cases

• Price a product against target margin
• Compare margin vs markup on a quote
• Check unit economics quickly

Frequently asked questions