Profit Margin Calculator
Compute gross or net profit margin from revenue and cost (or profit). Shows margin vs markup differences. Runs locally in your browser. Try it free.
Trust summary Engine tested · Specification checked · v1.1.0
- Input interpretation
- Enter values to calculate.
- Result
- —
- Model
- Profit amount and margin percentage.
- Scope
- Fixed rates and terms as entered; no fees or taxes unless modeled.
- Verification
- Engine tested · Specification checked · v1.1.0
- Named expert review
- Optional · Not performed
- Specification basis
- U.S. Small Business Administration / standard financial statement analysis — profit margin = (revenue − cost) / revenue
- GAAP conceptual framing — margin as profit relative to sales (educational estimate)
Formulas
Core equations used by this calculator.
How to use
Enter the known values
Fill in each field with amounts and rates as labeled.
Calculate
Results update as you type; compare scenarios below when available.
Read the outputs
Check the result panel for the primary figure and supporting totals.
Example calculations
Common configurations with formula and result.
Worked example
Revenue 120,000 · Cost 78,000 → profit 42,000 · margin 35%
Profit Margin calculator specification
Version 1.1.0 · Engine tested
- Engine tested 3 published cases
- Named expert review Not performed
- Calculation version 1.1.0
- Definition
- Profit margin is profit as a share of revenue: Margin = (revenue − cost) / revenue. It differs from markup, which divides by cost.
- What it calculates
- Profit amount and margin percentage.
- Inputs
- Values shown on the calculator form
- Outputs
- Primary result in the result panel
- Formula
Margin = (revenue − cost) / revenue- Assumptions
- Fixed rates and terms as entered; no fees or taxes unless modeled.
- Calculation runs locally in the browser.
- Units
- Currency units as entered (dimensionless rates in %)
- Boundary conditions
- Zero or missing required fields yield zero or empty results.
- Negative inputs are treated as zero.
- Example
- Revenue 120,000 · Cost 78,000 → profit 42,000 · margin 35%
- Validation cases
3 published on this page
- 120000 · 78000 → margin 35%
- 100 · 100 → margin 0%
- 200 · 50 → margin 75%
- Specification basis
- U.S. Small Business Administration / standard financial statement analysis — profit margin = (revenue − cost) / revenue
- GAAP conceptual framing — margin as profit relative to sales (educational estimate)
- Calculation version
- 1.1.0
Background
Interpretation and common distinctions.
About this calculator
Profit margin is profit as a share of revenue: Margin = (revenue − cost) / revenue. It differs from markup, which divides by cost.
Example
Revenue 120,000 · Cost 78,000 → profit 42,000 · margin 35%
Related tools
Other calculators in this family: Compound Interest, Simple Interest, ROI Calculator .
Frequently asked questions
Key distinctions behind the calculation.
How does the Profit Margin Calculator work?
It uses Margin = (revenue − cost) / revenue. All math runs locally in your browser.
Can I share my inputs?
Yes. Use Copy link in the result panel — the URL stores your current inputs.