Scenario 1
Service business
Revenue $10,000, cost $4,000 → $6,000 profit, 60% margin.
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Profit Margin Calculator
Know exactly what each sale really earns you — and whether your pricing leaves enough room.
Adjust your inputs
Results update instantly as you type or drag.
0 – 1,000,000
$
0 – 1,000,000
$
Quick insights
Gross profit
$4,000
Markup on cost
66.67%
Quick answer
What is profit margin?
Profit margin is the percentage of revenue you keep as profit. It equals (Revenue − Cost) / Revenue × 100.
How it works
From inputs to result in four steps
A quick walkthrough of what this calculator does behind the scenes.
- 1
Enter the revenue you collect from a sale or project.
- 2
Add up everything it costs you to deliver it.
- 3
We compute profit, margin, and markup at the same time.
- 4
Compare margin against industry benchmarks to gauge health.
Formula
The math behind the number
No black box — here's exactly how the result is computed.
Margin % = Revenue − Cost
─────────────── × 100
RevenueProfit margin tells you how much of every dollar you actually keep — the rest goes to costs.
Examples
Real-world scenarios
See how the numbers play out for typical use cases.
Scenario 2
E-commerce product
Revenue $50, cost $30 → $20 profit, 40% margin, 67% markup.
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