Calculator

Profit Margin Calculator

Find profit or loss and compare it with revenue and cost.

Calculate profit margin

Use the same currency or unit for both values. Cost may include the direct expenses you choose to measure.

Informational calculation: The result depends on which costs and revenue you include. Review your accounting definitions before relying on it for a business decision.

Profit margin and markup are different

Profit margin divides profit by revenue. Markup divides profit by cost. If an item costs 60 and sells for 100, profit is 40, profit margin is 40%, and markup is about 66.67%.

A negative result means cost is greater than revenue. When cost is zero, markup cannot be calculated because its formula would divide by zero.