The formula, made clear.
Profit = revenue − costs. Profit margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100.
Results exclude any expenses not included in your cost input and are not accounting or tax advice.
BUSINESS TOOL
Profit Margin Calculator
Calculate profit, profit margin and markup from revenue and total costs for a product, order or business period.
Net profit margin36%Profit 18,000 · markup on cost 56.25%
When to use this calculator
Enter revenue and all costs for the same product, order or reporting period. The calculator shows absolute profit, margin on revenue and markup on cost.
See the calculation in context
Revenue of 50,000 minus costs of 32,000 produces profit of 18,000, a 36% margin and a 56.25% markup.
Frequently asked questions
What is the difference between margin and markup?
Margin compares profit with revenue; markup compares profit with cost.
Can profit margin be negative?
Yes. Costs above revenue produce a loss and a negative margin.