CDConvertibleData
Finance calculator

Profit Margin Calculator

Calculate gross profit and profit margin from cost and revenue.

✓ Tested formula✓ Instant result✓ Private by design
01
Enter your valuesResults update instantly as you type.

✓ Your numbers stay on this device.

Understand the answer

Formula and method

FormulaProfit margin = (revenue − cost) ÷ revenue × 100.

Margin compares profit with selling revenue, which differs from markup because markup uses cost as its denominator.

Worked example

Revenue of 100 and cost of 60 produces 40% margin.

How to use this calculator

  1. Enter the values using the labels and units shown.
  2. Review the live result and supporting details.
  3. Check the formula, example and assumptions before using the answer.

Assumptions and limits

  • The entered cost includes every cost you want reflected in gross profit.

Reference

Formula reviewed 2026-07-15

↑↓ Navigate · Enter Open · Esc Close