Finance calculator

Profit Margin Calculator

Calculate profit and profit margin percentage from revenue and cost.

Instant result

Result

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Enter values to calculate.

Inputs—

Mode—

Formula—

Formulas

Core equations used by this calculator.

PrimaryMargin = (revenue − cost) / revenue

iRuns locally in your browser. Results are informational — verify critical financial decisions independently.

How to use

Follow these steps for a clear answer.

1

Enter the known values

Fill in each field with amounts and rates as labeled.

2

Calculate

Results update as you type; compare scenarios below when available.

3

Read the outputs

Check the result panel for the primary figure and supporting totals.

Example calculations

Common configurations with formula and result.

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Worked example

Revenue 120,000 · Cost 78,000 → profit 42,000 · margin 35%

Margin = (revenue − cost) / revenue

See result panel

Profit Margin calculator specification

Version 1.0.0 · Last reviewed 2026-07-28

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
About this calculator

Profit margin is profit as a share of revenue: Margin = (revenue − cost) / revenue. It differs from markup, which divides by cost.

Formula

Margin = (revenue − cost) / revenue

Example

Revenue 120,000 · Cost 78,000 → profit 42,000 · margin 35%
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: 120000 · 78000 → margin 35%
100 · 100 → margin 0%
200 · 50 → margin 75%
Sources: Standard time-value-of-money / managerial accounting identities
Last reviewed: 2026-07-28
Calculation version: 1.0.0

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.