Profit Margin Calculator
Profit margin % = (Revenue − Cost) ÷ Revenue × 100(200 − 120) ÷ 200 × 100 = 40%
Free online tool
Profit Margin Calculator
See how much revenue remains as profit after subtracting cost.
Instant calculation
Calculate profit margin
Compare profit with total revenue.
Instant calculation
Calculate selling price from desired margin
Find the selling price needed to achieve a target profit margin.
Your result
Calculation
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Three clear steps
How to use this calculator
- 01
Enter revenue
Type the total revenue before costs are deducted.
- 02
Enter cost
Type the total cost associated with that revenue.
- 03
Calculate margin
See profit and profit margin percentage.
The formula
How this calculation works
Subtract cost from revenue to find profit, then divide profit by revenue and multiply by 100.
Check the method
Worked examples
Each example follows the same formula used by the calculator.
What is the margin on 200 revenue and 120 cost?
(200 − 120) ÷ 200 × 100 = 40%40% margin; profit 80What is the margin on 500 revenue and 350 cost?
(500 − 350) ÷ 500 × 100 = 30%30% margin; profit 150Common questions
Questions about this calculation
How is profit margin calculated?
Subtract cost from revenue, divide the profit by revenue, and multiply by 100.
What is the margin on 200 revenue and 120 cost?
Profit is 80 and the profit margin is 40%.
Can profit margin be negative?
Yes. A negative margin means cost is greater than revenue, producing a loss.
Why must revenue be greater than zero?
Revenue is the divisor in the margin formula, so zero revenue makes the percentage undefined.
How is margin different from markup?
Margin divides profit by revenue, while markup divides profit by cost. They answer different business questions.
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