Profit Margin Calculator
Calculate the profit margin of making, trading products, or doing business in general. Please provide any two of the following to calculate the rest values.
Cost: The cost of the product.
Revenue: The income generated by selling the product.
Profit: The money left after deducting cost from revenue.
Margin: The percentage of profit vs. revenue.
Markup: The percentage of profit vs. cost.
💰 Master Your Profits with Our Free Margin Calculator
Are you struggling to quickly determine the health of your business or the profitability of a specific product? Understanding the relationship between Cost, Revenue, Profit, Margin, and Markup is crucial for success, yet calculating these figures can be time-consuming.
Our free online Profit Margin Calculator tool is designed to provide instant, accurate results, helping you make smarter pricing and purchasing decisions right now.
How Our Margin Calculator Works
What sets this tool apart is its flexibility. Unlike simpler calculators, ours allows you to find any missing value as long as you provide two known inputs.
The underlying formula for profit is simple: Profit = Revenue – Cost. However, calculating the percentage relationships (Margin and Markup) often leads to errors. Our tool eliminates this guesswork.
Input any two fields to calculate the rest:
Cost: The amount spent to produce or acquire the goods.
Revenue: The total income received from sales.
Profit: The financial gain made after all expenses (Cost) are subtracted.
Margin (%): The percentage of Revenue that is pure profit. (Formula: Profit / Revenue)
This makes it the perfect markup calculator and gross profit margin calculator wrapped into one.
Why Accurate Margin Calculation Matters
Knowing your exact profit margin is essential for long-term strategy:
Pricing Strategy: It informs you how low you can drop a price during a sale without losing money.
Product Selection: It highlights which products are truly profitable, allowing you to focus inventory and marketing efforts where they matter most.
Investment Decisions: Calculating your margin before increasing your Cost (e.g., buying better materials or paying higher salaries) tells you if the investment is viable.
Use the instant feedback from the donut chart visualization to see the direct relationship between your Cost and Profit at a glance. Plus, our secure download feature lets you save your results directly to your desktop (like Notepad) for record-keeping and historical analysis.
Stop guessing your profitability. Input your values above and gain clear insight into your financial performance today!