Financial calculator
Profit Margin Calculator
Calculate profit and profit margin from revenue and cost.
Build your scenario
Use your actual figures where available. The output is an educational estimate based on the assumptions below.
FINANCIAL ESTIMATE
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Profit—
Revenue—
Cost—
Results are estimates for education. Actual terms, rates, taxes, fees, compounding, and lender or investment conditions can change the outcome.
How this profit margin calculator works
Profit is revenue minus the cost you enter. Margin is that profit divided by revenue, not by cost. Operating expenses, tax and depreciation are included only if you put them in the cost field.
Important: Review the assumptions shown under each input. Changing one assumption can materially change the result.
When to use this calculator
- Turn a revenue and cost pair into a profit and a margin percentage.
- See how a higher cost shrinks margin on the same revenue.
- Compare with the markup calculator, which prices from cost rather than from revenue.
Related education
Read the guide → Browse all financial guides →
Frequently asked questions
Is this gross margin or net margin?
It is whatever you put in the cost box. The tool does not add overhead, tax or interest on its own.
How is this different from markup?
Margin is profit divided by revenue. Markup is profit divided by cost. A 50% markup is not a 50% margin.
Are sales taxes deducted?
Not automatically. Include tax in cost only if you want it in this estimate.