Profit Margin Calculator

The Profit Margin Calculator instantly calculates your profit margin, markup, and profit from cost and revenue values. Simply enter your numbers and get accurate results in seconds.

This tool is perfect for business owners, e-commerce sellers, accountants, and financial planners who want to determine pricing strategies, optimize profitability, and analyze business performance.

How Profit Margin is Calculated

Understanding how profit margin works helps you analyze the true profitability of your business or product. The Profit Margin Calculator uses standard financial formulas to provide quick and accurate results.

Profit Margin Formula:
Profit Margin (%) = (Revenue − Cost) / Revenue × 100
or
Profit Margin (%) = (Profit / Revenue) × 100
or
Profit Margin (%) = (Markup % / (100 + Markup %)) × 100
or
Profit Margin (%) = (Profit / Cost) × 100 ÷ (1 + Profit / Cost)

These formulas help you determine whether your pricing covers all costs and how efficiently your business generates income. You can easily switch between margin and markup modes in the calculator to suit your analysis needs.