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Profit Margin Calculator

Instantly find profit, margin %, and markup % from cost and revenue

Enter Values

Results

Profit$40.00
Margin33.33%
Markup50.00%
Margin Health:Healthy

Revenue Breakdown

Cost (66.7%)Profit (33.3%)
Cost$80.00
Revenue$120.00
Gross Profit$40.00
Profit Margin %33.33%
Markup %50.00%

Formulas

  • Profit = Revenue − Cost
  • Profit Margin % = (Profit ÷ Revenue) × 100
  • Markup % = (Profit ÷ Cost) × 100
  • Revenue (from cost + margin) = Cost ÷ (1 − Margin% ÷ 100)

Margin vs Markup: Margin is profit as a share of revenue; markup is profit as a share of cost. A 25% markup gives a 20% margin.

About

Use this free profit margin calculator to instantly compute gross profit, profit margin percentage, and markup percentage from any cost and revenue figures. Whether you're pricing a product, analyzing a deal, or setting business targets, just enter two known values — the third is calculated automatically. All math runs in your browser with no data sent to a server.

FAQ
What is the difference between profit margin and markup?+

Profit margin expresses profit as a percentage of revenue (selling price), while markup expresses profit as a percentage of cost. For example, if you buy something for $80 and sell it for $120, your profit margin is 33.3% but your markup is 50%. Always clarify which metric you're using when discussing pricing.

How do I find the selling price from cost and a target margin?+

Use the formula: Revenue = Cost ÷ (1 − Margin% ÷ 100). For a $80 cost and 33% target margin, Revenue = 80 ÷ 0.67 ≈ $119.40. The 'Cost + Margin %' mode in this calculator does this automatically.

What is a good profit margin?+

It depends heavily on the industry. Retail businesses often target 5–20%, software and SaaS companies may exceed 70%, while restaurants typically operate at 3–9%. A margin above 25% is generally considered healthy across many sectors, but always benchmark against your specific industry.

Can profit margin be negative?+

Yes. If your costs exceed your revenue, profit is negative — meaning you're operating at a loss. This calculator will show a negative profit and a negative margin percentage, and flag the result visually so you can see at a glance when a pricing scenario is unsustainable.

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