Enter your numbers
Margin
—
Enter values to calculate.
How this calculator works
Margin measures profit as a percentage of revenue. To find margin, subtract cost from revenue to get profit, then divide profit by revenue and multiply by 100.
Formula: ((revenue − cost) ÷ revenue) × 100
This is useful when you want to know what share of each sale remains after covering the direct cost.
Example
If your selling price is $100 and your cost is $70:
100 − 70 = 30 profit
(30 ÷ 100) × 100 = 30%
So your gross profit margin is 30%.
Common uses
- Checking profitability on products or services
- Comparing business performance across items or categories
- Reviewing ecommerce pricing and direct costs
- Understanding how much of each sale is true gross profit
Frequently asked questions
What is profit margin?
Profit margin is the percentage of revenue left over after subtracting cost.
Profit margin is the percentage of revenue left over after subtracting cost.
Why is margin different from markup?
Margin uses revenue as the base, while markup uses cost as the base.
Margin uses revenue as the base, while markup uses cost as the base.
What if cost is higher than revenue?
The calculator will show a negative margin, which means you are selling at a loss.
The calculator will show a negative margin, which means you are selling at a loss.