Profit Margin Calculator
Calculate your profit margin, gross profit, and markup percentage based on cost and revenue. Ideal for businesses to price products effectively.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Profit Margin Calculator
- Enter Cost Price: Input the cost per unit (e.g., $50) in the Cost Price field. Use a non-negative number.
- Enter Revenue: Input the revenue per unit (e.g., $100) in the Revenue field. Use a non-negative number.
- Calculate: Click the Calculate button.
- View Results: The calculator displays:
- Gross Profit = Revenue − Cost (in dollars).
- Profit Margin (%) = (Gross Profit ÷ Revenue) × 100.
- Markup (%) = (Gross Profit ÷ Cost) × 100.
- Note: Both fields require valid non-negative numbers. If both are zero, an error appears.
Use this to quickly assess profitability per unit.
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Frequently Asked Questions
Profit margin is the percentage of revenue that remains as profit after deducting costs. It indicates how efficiently a company is generating profit from sales.
Profit margin is calculated as (Gross Profit / Revenue) * 100, where Gross Profit = Revenue - Cost.
Margin is the percentage of revenue that is profit, while markup is the percentage of cost that is profit. For example, a 50% margin means profit is 50% of revenue, whereas a 50% markup means profit is 50% of cost.
