Profit Margin Calculator
Enter any two values to calculate profit, margin, markup, revenue, and cost.
Profit Analysis
What is a Profit Margin Calculator?
A profit margin calculator helps businesses and entrepreneurs determine profitability by computing gross profit, margin percentage, and markup percentage from cost and revenue data.
Margin shows what percentage of revenue is profit, while markup shows what percentage of cost is added to reach the selling price. Understanding both metrics is essential for pricing strategies and financial analysis.
How to Use
- Enter any two of the following: Cost, Revenue, Margin %, or Markup %.
- Leave the other fields blank; the calculator will solve for them.
- Click Calculate to see the complete profit analysis.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit divided by revenue. Markup is profit divided by cost. For example, if an item costs $50 and sells for $80, the margin is 37.5% and the markup is 60%.
Can I use negative values?
Cost and revenue should generally be positive. Markup can be negative to represent a loss, but margin should remain below 100% for valid results.
Which metric should I use for pricing?
Markup is often used to set prices based on cost. Margin is used to analyze profitability after sales are made. Both are useful depending on your goal.
Why do I need to enter two values?
With two known values, the calculator can derive the other three using the fundamental relationships between cost, revenue, profit, margin, and markup.