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