Find your profit margin, markup and profit from revenue and cost.
profit margin
How to use this tool
Type the selling price or total revenue for the item or period.
Type what it cost to buy or make it.
Margin is profit as a share of revenue; markup is profit as a share of cost — do not mix them up.
Raise or lower the price to see how margin moves before you commit to a price.
Formula & worked example
Selling at $100 with a $70 cost gives $30 profit, a 30.00% profit margin and a 42.86% markup. Cost is 70% of revenue.
Limitations — read this before you rely on it
This is a gross-margin view from one revenue and one cost figure. It does not split fixed and variable costs, taxes, discounts or overheads — for a full picture, use fully-loaded costs.
Frequently asked questions
Profit margin = (revenue – cost) / revenue x 100. It tells you how much of each sales dollar is kept as profit.
Margin divides profit by revenue; markup divides profit by cost. A $30 profit on $100 revenue is a 30% margin but a 42.86% markup on $70 cost.
Yes — if cost exceeds revenue you are losing money, and the margin is negative. That is a warning to raise the price or cut costs.
It varies hugely by industry: grocery margins are often under 5%, while software can exceed 50%. Compare against your own industry, not a single magic number.
No. Enter revenue and cost on the same basis (both before or both after tax) for a meaningful result.