Profit Margin Calculator
Calculate profit margin as a percentage of revenue. Enter revenue and cost to see profit, the formula, and how margin differs from markup.
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Formula
Margin (%) = (revenue − direct costs − other entered expenses) ÷ revenue × 100. Revenue must be greater than zero.
Worked example
With revenue of 1,000 and cost of 650, profit is 350 and profit margin is 35%.
What the result means
Profit margin is profit divided by revenue. It includes only direct costs and other expenses you enter; it is not the same as markup or a formal accounting classification.
How to Use Profit Margin Calculator
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Key Features & Benefits
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Clear business context
Calculate profit margin as a percentage of revenue. Enter revenue and cost to see profit, the formula, and how margin differs from markup.
Frequently Asked Questions
What is the difference between margin and markup?
Margin divides profit by selling revenue; markup divides profit by cost. A 35% margin on 1,000 revenue with 650 cost is not a 35% markup.
Why is margin undefined when revenue is zero?
The formula divides by revenue, so zero revenue has no defined percentage margin.
Key terms
- profit margin
- Profit margin is profit divided by revenue. It includes only direct costs and other expenses you enter; it is not the same as markup or a formal accounting classification.