How to use the Profit margin calculator
Enter revenue, and total costs. Choose the currency for your inputs and read the result as you change the values.
How it works and formula
Profit = revenue − costs. Margin = 100 × profit ÷ revenue.
Worked example
| Revenue | 100 |
|---|---|
| Total costs | 65 |
Result
Profit $35.00 · Margin 35.00%
Choosing your inputs
Match revenue and costs to the same product, order, or period. Include the costs you want reflected in the margin, such as shipping, fees, and product cost. A positive revenue amount is required to calculate a margin.
How to interpret the result
At $100 of revenue and $65 of costs, $35 remains and the margin is 35%. Compare cost scenarios to see how supplier charges or discounts affect the amount kept per dollar of revenue.
Frequently asked questions
Is margin the same as markup?
Margin divides profit by revenue. Markup divides it by cost. Use the markup tool to set a price from cost.
Can the margin be negative?
Yes. If costs are $120 and revenue is $100, profit is −$20 and margin is −20%.