Profit Margin Calculator
Calculate profit margin, markup, and cost from revenue and costs.
Formula
Profit Margin = (Revenue - Cost) ÷ Revenue × 100 Markup = (Revenue - Cost) ÷ Cost × 100
Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that remains as profit after covering costs. A 30% profit margin means for every dollar of revenue, 30 cents is profit. Formula: (Revenue - Cost) ÷ Revenue × 100.
Margin vs markup?
Margin is based on selling price: (Selling - Cost) ÷ Selling × 100. Markup is based on cost: (Selling - Cost) ÷ Cost × 100. They are different calculations and can't be used interchangeably.