Margin Calculator

FAQs

What is a profit margin?

Profit margin shows how much of your revenue remains as profit after subtracting all costs. It’s a key financial metric that helps evaluate business performance and efficiency.

How do you calculate profit margin?

The standard formula for profit margin is:
Profit Margin (%) = (Revenue - Cost) ÷ Revenue × 100.
The calculator applies this formula automatically once you enter your revenue and cost values.

What’s the difference between margin and markup?

Margin represents profit as a percentage of revenue, while markup represents profit as a percentage of cost.
Example: a 25% margin equals roughly a 33.3% markup.

Can this tool calculate cost or revenue if I only know the margin?

Yes! If you know any two of these values - cost, revenue, profit, margin, or markup - the calculator automatically finds the missing ones.

Does the calculator show how the formulas work?

Yes, you can enable Formula Mode to see exactly how each value is computed. This feature makes it perfect for learning or verifying your financial calculations.

What is a good profit margin?

It depends on the industry. For instance:
Retail: typically 5-20%
Restaurants: 3-10%
Software / Digital Products: often above 50%
Higher margins usually indicate strong pricing power or lower operating costs.

Can I use it for both gross and net margins?

Absolutely. Enter your total revenue and either cost of goods sold for gross margin, or all expenses for net margin. The calculator adjusts accordingly.