Profit Margin Calculator

How the Profit Margin Calculator Works

This calculator helps you determine your gross profit, net profit, and profit margin percentage based on your revenue and cost. Profit margin is one of the most important indicators of business performance and financial health.

Formulas Used

The calculator uses standard business profitability formulas:

• Profit: Revenue − Cost
• Profit Margin %: (Profit ÷ Revenue) × 100
• Markup % (optional insight): (Profit ÷ Cost) × 100

Example

Example for revenue = $2,000 and cost = $1,200:

Profit = 2000 − 1200 = 800
Profit Margin = (800 ÷ 2000) × 100 = 40%
Markup = (800 ÷ 1200) × 100 = 66.7%