Profit Margin Calculator
Calculate gross profit and margin from your cost and revenue.
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When to use profit margin calculator
- Check the margin on a product.
- Compare a quoted price with direct costs.
How it works
Gross profit = revenue − cost. Profit margin (%) = (revenue − cost) ÷ revenue × 100. Markup (%) uses cost as its denominator.
Supported inputs and limits
Revenue must be positive. Cost can be zero. This is gross margin: overhead, tax, refunds and other costs are included only if you put them in the inputs. Results are arithmetic estimates, not accounting advice.
Common questions
Is margin the same as markup?
No. Margin divides profit by revenue. Markup divides profit by cost. A 50% markup produces a 33.3333% margin.
Can margin be negative?
Yes. If cost exceeds revenue, the result shows a loss.
Methodology reviewed 2026-09-09. Processing details and test approach.