Calculate profit margin, markup, and profit amount. Free online profit margin calculator with formula, examples, and FAQ for business analysis.
Profit margin is one of the most important metrics in business, showing what percentage of revenue is actual profit. The profit margin calculator helps you determine your profit amount, profit margin percentage, and markup percentage. Understanding these metrics is crucial for pricing strategy, financial planning, and business health assessment.
Profit = Revenue - Cost | Margin = (Profit / Revenue) × 100 | Markup = (Profit / Cost) × 100Profit margin measures profit as a percentage of revenue — how much of each dollar earned is profit. Markup measures profit as a percentage of cost — how much you add on top of cost to get the selling price. These are different perspectives: margin is customer-facing, markup is seller-facing.
| Input | Output |
|---|---|
| Revenue: $50,000, Cost: $35,000 | Profit: $15,000, Margin: 30%, Markup: 42.86% |
| Revenue: $100,000, Cost: $60,000 | Profit: $40,000, Margin: 40%, Markup: 66.67% |
| Revenue: $25,000, Cost: $20,000 | Profit: $5,000, Margin: 20%, Markup: 25% |