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business
Free profit margin calculator. Enter revenue and cost to get your margin percentage, and learn how margin differs from markup. Accurate and instant.
Enter your values and select Calculate to see the result.
Profit margin expresses profit as a percentage of revenue, which lets you compare products, months and businesses of different sizes. A 30% margin means you keep 30 cents of every dollar of sales.
Enter revenue and total cost to get the margin. Margin is measured against the selling price, so it is always lower than markup for the same sale. If you are setting prices from costs, the markup calculator is the better starting point.
((revenue − cost) ÷ revenue) × 100
A $350 profit on $1,000 revenue gives a 35% margin.
Estimates only. This calculator gives a general estimate and is not financial, tax or legal advice. Rates, fees and rules vary by country and situation. Read our disclaimer.
Profit margin is profit as a percentage of revenue: (revenue − cost) ÷ revenue × 100. A $350 profit on $1,000 of revenue is a 35% margin.
Margin is measured against the selling price, markup against the cost. The same sale can be a 35% margin and a 53.85% markup. Mixing them up leads to underpricing.
It depends on the industry. Software can reach 70% or more, while retail and food often run on single or low double digits. Compare against businesses like yours.
Margin divides by revenue, so revenue of zero would be a division by zero.