Free Margin Calculator
Calculate profit margin percentage from cost and revenue. Essential for pricing strategy and profitability analysis.
USD
USD
Profit Margin
40.00%
Profit$40.00
Markup66.67%
Profit Margin vs Revenue (Selling Price)
How to Calculate Profit Margin
Formula
Margin % = [(Revenue - Cost) / Revenue] x 100
Profit margin tells you what percentage of each dollar in revenue is actual profit. It is one of the most important metrics for evaluating business health.
Example Calculation
A product sells for $100 and costs $60.
- 01Profit = $100 - $60 = $40
- 02Margin = ($40 / $100) x 100 = 40%
- 03Markup = ($40 / $60) x 100 = 66.67%
Frequently Asked Questions
Learn More
How to Calculate Profit Margin
Learn how to calculate gross, operating, and net profit margins step by step. Understand what healthy margins look like across industries and how to improve yours.