Profit Margin Calculator
Calculate profit margin, profit, and markup.
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About the Profit Margin Calculator
Calculate profit margin free — enter your selling price (revenue) and cost, and instantly get your margin percentage, dollar profit, and markup. The distinction trips everyone up: margin is profit as a share of revenue, markup as a share of cost, so a $50 profit on an $80 sale is a 62.5% markup but a 37.5% margin. Price products, quote services, and check whether a discount still leaves you profitable.
How to use the Profit Margin Calculator
- 01Enter your revenue (selling price) and cost.
- 02Read the result instantly — it recalculates as you type.
- 03Adjust the numbers to model different scenarios.
Frequently asked questions
Margin vs markup — what's the difference?
Margin is profit as a percentage of revenue; markup is profit as a percentage of cost. The same dollar profit yields a higher markup than margin.
How do I calculate profit margin?
Profit margin = (revenue − cost) ÷ revenue × 100.
What is a good profit margin?
10% net is often considered healthy, 20% strong; gross margins vary by industry — software runs 70%+, groceries under 5%.