Profit Margin Calculator
Calculate profit and profit margin from revenue and cost.
A profit margin calculator computes your profit and margin percentage from revenue and cost: margin = profit / revenue × 100.
How to Use the Profit Margin Calculator
- Enter revenue. Type your total revenue.
- Enter cost. Type your total cost.
- Read the result. See profit and margin percentage.
This tool processes your input locally in your browser. Nothing is uploaded.
What Is Profit Margin?
Profit margin measures how much of your revenue is kept as profit, a key indicator of business profitability.
Formula
Profit = revenue − cost. Margin (%) = (profit / revenue) × 100. A higher margin means a larger share of revenue is profit.
Key Features
- Profit amount
- Margin percentage
- Instant results
Examples
- Revenue $5,000 and cost $3,500 → profit $1,500, margin 30%.
Common Use Cases
- Pricing
- Business analysis
- Financial planning
Tips & Best Practices
- Compare margins across products to find the most profitable.
Limitations
- Use consistent definitions of cost for accurate results.
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Frequently Asked Questions
What is profit margin?
Profit as a percentage of revenue: (revenue − cost) / revenue × 100.
How is profit calculated?
Revenue minus cost.
Is it free?
Yes, and it runs locally.