Business Calculators

Profit Margin Calculator

Use this profit margin calculator to find profit amount and margin percentage from revenue and cost.

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Formula

Profit = Revenue − Cost
Profit margin % = Profit ÷ Revenue × 100

Worked examples

Revenue 100, cost 80 gives profit 20 and profit margin 20%.
Revenue 250, cost 175 gives profit 75 and profit margin 30%.

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Frequently asked questions

What is profit margin?

Profit margin shows what percentage of selling price remains as profit after cost.

How is margin different from markup?

Margin is profit divided by selling price; markup is profit divided by cost.

Can profit margin be negative?

Yes. If cost is higher than revenue, the result is a negative margin.