Profit Margin Calculator

A price of 100 on a cost of 60 gives a profit of 40, a margin of 40% and a markup of 66.6667%.

How it works

• Subtracted the cost from the revenue to get the profit.
• Divided the profit by the revenue and multiplied by 100 for the margin.
• Divided the profit by the cost and multiplied by 100 for the markup (undefined at zero cost).

margin = (revenue − cost) / revenue × 100 = (100 − 60) / 100 × 100

• A negative profit means the price is below cost; the margin is then negative too.
• This is an illustration for information only, not accounting or financial advice.

Methodology

1. Profit = revenue − cost.
2. Profit margin = profit ÷ revenue × 100.
3. Markup = profit ÷ cost × 100, reported only when the cost is greater than zero.
4. Results are rounded half-up to two decimals for money and four for percentages.

Usage

1. Enter the unit or total cost.
2. Enter the selling price (revenue).
3. Read the profit, the profit margin and the markup.

Examples

These are examples, not current values: they use fixed inputs, while the interactive tool computes live results in your browser.

Healthy retail margin

{
  "cost": 60,
  "revenue": 100
}

Sold at cost

{
  "cost": 80,
  "revenue": 80
}

Sold at a loss

{
  "cost": 120,
  "revenue": 100
}

Limitations

Disclaimer

This calculator is an illustration for information only and is not accounting or financial advice. It does not know your real cost base or tax position. Confirm the figures against your own records.