Profit Margin Calculator

Calculate profit, margin, and markup

See the profit on a sale and the two ways it's often expressed: margin (profit as a share of revenue) and markup (profit as a share of cost). Enter your revenue and cost.

Calculate profit, profit margin (% of revenue), and markup (% of cost).

$
$

Profit

$4,000.00

Profit Margin

40.00%

Markup

66.67%

How to Use This Calculator

  1. Enter your revenue (the selling price or total sales).
  2. Enter your cost (what it cost to produce or buy).
  3. Review the profit, profit margin, and markup.

Why Use This Calculator?

  • Pricing a product to hit a target margin.
  • Comparing margin and markup to avoid confusion.
  • Checking whether a sale is actually profitable.

Real-World Examples

$10,000 revenue, $6,000 cost

Profit is $4,000. That's a 40% profit margin and a 66.7% markup on cost.

Margin vs. markup

Profit margin = (revenue − cost) ÷ revenue. Markup = (revenue − cost) ÷ cost. Same profit, two different percentages, because the denominators differ — which is why the two numbers are so often confused.

Frequently Asked Questions

Why are margin and markup different numbers?

Because margin divides by the selling price and markup by the cost. A 40% margin corresponds to a 66.7% markup on the same sale.

What if my cost is zero?

Markup is undefined when cost is zero (you can't divide by zero), though margin would be 100% on a pure-profit sale.

Does this include overhead?

Only if you fold overhead into the cost figure. This calculation uses whatever cost you enter.

Important Disclaimer

A simple gross calculation using the figures you enter. It doesn't account for overhead, taxes, or discounts and isn't financial or accounting advice.

Privacy

Your entries stay in your browser and aren't stored or transmitted.

Related Calculators

Break-Even Calculator

Find the break-even point for your business

Markup & Discount Calculator

Apply a markup or discount to a price

Commission Calculator

Calculate commission earned from sales

Mortgage Calculator

Calculate monthly mortgage payments and total interest

Loan Calculator

Estimate loan payments and amortization