💹 Profit Margin Calculator

Calculate gross profit, margin percentage, and markup from revenue and total costs.

Try the calculator

The values below are a working example. Change any field to recalculate instantly in your browser.

Formatting only — amounts are not converted using exchange rates.
GROSS PROFIT MARGIN40%
Gross Profit$10,000.00
Revenue$25,000.00
Total Cost$15,000.00
Markup on Cost66.67%

Formula & Mathematical Logic

Profit Margin = (Revenue − Cost) / Revenue × 100

Profit margin measures profit as a percentage of revenue. Markup measures the same profit as a percentage of cost. Calculations run locally in your browser.

Worked Example

$25,000 revenue minus $15,000 cost creates $10,000 gross profit, a 40% margin, and a 66.67% markup.

Frequently Asked Questions

How is this result calculated?

Margin divides profit by revenue, while markup divides profit by cost. They describe the same transaction from different bases.

Does Calcixa upload my inputs?

No. Inputs and results remain in your browser and are not sent to a Calcixa server.

CALCIXA PRACTICAL GUIDE

How to use the Profit Margin Calculator

Profit margin measures profit as a share of revenue, while markup measures the same profit as a share of cost. The distinction matters when setting prices: a 50% markup does not produce a 50% margin.

This calculator uses entered revenue and cost totals. It does not decide whether costs should include labour, overhead, tax, shipping, returns, discounts, or financing; consistent accounting definitions are essential when comparing periods or products.

Step-by-step

  1. Define the revenue period and cost scope before entering values.
  2. Enter revenue net of returns or discounts if that matches your reporting method.
  3. Enter costs on the same scope and calculate profit, margin, and markup.
  4. Use consistent definitions across comparisons and reconcile final figures with accounting records.

How to read the result

  • Gross profit is revenue minus the entered cost.
  • Margin divides profit by revenue and describes how much of each revenue unit remains.
  • Markup divides profit by cost and describes how much was added over cost.

Common mistakes to avoid

  • Using margin and markup as interchangeable percentages.
  • Mixing gross, operating, and net cost definitions.
  • Ignoring returns, tax treatment, overhead, or period mismatch.

Important: This educational estimate is not financial, investment, tax, or lending advice.

More questions about Profit Margin Calculator

Why is markup higher than margin for the same sale?

Markup uses the smaller cost base, while margin uses the larger revenue base.

Can margin exceed 100%?

A conventional positive-cost sale margin does not; unusual negative costs or accounting adjustments require separate interpretation.

Is this a net-profit calculator?

Only if the entered cost includes every expense needed for your chosen net-profit definition.

Sources and methodology

Calcixa explains the model, assumptions, and limitations so you can verify the result. See our calculation and tool methodology for rounding, privacy, testing, and correction practices.

Maintained by the Calcixa product team. This page was last updated on 7 September 2026.