Calculate your profit margin and markup from revenue and cost. Enter your numbers to see your profit, margin percentage, and markup instantly.
Knowing whether you actually made money on a sale is the first question every business asks — and the answer is not always obvious from the price tag. If you buy something for $60 and sell it for $100, you made $40, but is that a 40% margin or a 67% markup? Both numbers are right, and they answer different questions. This calculator works out all three figures at once, so you can price with confidence instead of guessing.
Profit Margin Calculator
Work out your profit and profit margin from revenue and cost.
🔒 Privacy: this tool runs entirely in your browser. Your files and text never leave your device — nothing is uploaded to any server.
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What is a profit margin calculator?
A profit margin calculator works out how much money you keep from each sale, and what that is as a percentage. Enter your revenue (the selling price) and your cost (what you paid), and it shows your profit in dollars, your profit margin as a percentage of revenue, and your markup as a percentage of cost.
For example, if you sell a product for $100 and it cost you $60, your profit is $40. Your profit margin is 40% — the profit is 40% of the selling price. Your markup is about 66.7% — you added about two-thirds of the cost on top of what you paid. Margin and markup describe the same $40 from two different angles, which is why people often mix them up.
The formulas
- Profit = Revenue − Cost
- Profit margin = (Profit ÷ Revenue) × 100
- Markup = (Profit ÷ Cost) × 100
What you can use it for
- Pricing products: check whether a price leaves enough margin after costs.
- Comparing products: see which items in your shop earn the most per sale.
- Discounts: work out what a 10% or 20% discount does to your margin before you offer it.
- Freelance work: check the margin on a project after your time and expenses.
- Reselling: decide quickly whether a buy-and-sell deal is worth it.
How it works
Using this free profit margin calculator is simple:
- Enter your Revenue / selling price in dollars.
- Enter your Cost — what you paid for the product or the job.
- See your profit, profit margin percentage and markup instantly.
Frequently asked questions
Is this calculator free?
Yes, it is completely free to use, with no account or sign-up needed.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A 40% margin on a $100 sale is a 66.7% markup on a $60 cost — the same $40 profit, measured against a different number. Margin is the figure most businesses watch, because it shows what share of each sale you actually keep.
What is a good profit margin?
It depends on the business. A grocery shop might run on thin margins of a few percent, while a service business might aim much higher. There is no single right number — compare your margin with similar businesses, and make sure it covers your other costs, such as rent, tax and your own time.
Is my data saved anywhere?
No. The calculation happens in your browser, on your own device, and the numbers you enter are not sent to us or stored.
Good to know
- Remember the hidden costs: delivery, packaging, payment fees and your time all eat into the margin.
- A calculator result is an estimate based on the numbers you enter. Double-check important figures before making a pricing decision, and do not rely on it alone for financial or tax decisions.
- To work out a selling price from a cost and a markup percentage instead, use the Markup Calculator.
Related tools
Try the Markup Calculator, Break-Even Calculator or Freelance Hourly Rate Calculator, or browse all free tools on VerySimple.