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Profit Margin Calculator

Turn revenue and cost into profit, margin, and markup. e.g. “What margin do I make selling at $80 when it costs $50?”

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Methodology

Turn revenue and cost into profit, margin, and markup. This tool uses a standard, documented formula and runs entirely on your device.

Last reviewed January 2026 · Runs client-side

Profit margin
37.50%
Profit of $30.00 on $80.00 revenue
Gross profit$30.00
Margin %37.50%
Markup %60.00%
Cost as % of price62.50%
Formula used
Margin = (Revenue − Cost) / Revenue × 100
Profit = $80.00 − $50.00 = $30.00
Margin = $30.00 ÷ $80.00 = 37.50%

Results are estimates based on the values you entered and a standard formula. Verify important figures independently. FinDock does not provide financial, tax, legal, or medical advice.

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Profit margin, explained clearly

Profit margin tells you what share of your selling price is profit. It's the number to watch because it's expressed relative to revenue, which makes it comparable across products of very different prices. A $5 item and a $500 item can carry the same 30% margin.

Margin is often confused with markup, and the two are not interchangeable. Markup measures profit against cost; margin measures it against price. The same dollar of profit always produces a higher markup percentage than margin percentage, mixing them up is a common pricing mistake.

How to use this calculator

  1. Enter your revenue, the price you sell at.
  2. Enter your cost, what the item costs you.
  3. Read the profit, margin percentage, and markup percentage.

What the inputs mean

Revenue
The selling price you receive.
Cost
The direct cost of the item or service.
Worked example

Sell for $80 at a $50 cost and you make $30 profit, a 37.5% margin, which is the same as a 60% markup.

The formula, in plain terms

Margin = (Revenue − Cost) / Revenue × 100. Markup, by contrast, divides the same profit by cost.

Good to know

  • Quote margin when comparing products; quote markup when setting a price from cost.
  • Margin can never exceed 100%; markup can.

Frequently asked questions

What's a good profit margin?

It varies enormously by industry, grocery margins are thin, software margins are wide. Compare against peers in your own sector rather than a universal benchmark.

Is this gross or net margin?

This is a gross margin on a single item using the cost you enter. Net margin also subtracts overheads, taxes, and other operating costs.

Last reviewed January 2026. This explainer is general information, not professional advice.