Why use this calculator
Understanding profit margins is critical for pricing strategy, financial analysis, and business sustainability. This calculator helps business owners and analysts quickly evaluate profitability.
How to use it
Enter your revenue (or selling price) and cost. The calculator shows profit, margin percentage, and markup percentage.
The formula
Profit = Revenue - Cost. Margin = (Profit / Revenue) × 100. Markup = (Profit / Cost) × 100.
Worked examples
Sell for $100, cost $60
40% profit margin, 66.67% markup
When people use it
- Product pricing decisions
- Business financial analysis
- Comparing industry benchmarks
- Evaluating supplier costs
Tips
- Margin and markup are different! A 50% markup = 33.3% margin
- Industry average margins vary widely — research your sector
- Track margins over time to identify trends
Questions people ask
- What's the difference between margin and markup?
- Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A $40 profit on a $100 sale = 40% margin but 66.7% markup (on $60 cost).