Profit Margin Calculator
Check the margin on a product, project or order. Use the standard mode for known revenue and cost, or reverse the calculation to find the selling price required for a target margin.
iChoose one consistent cost definition before comparing margins.
Use it without guessing.
- 01Enter selling revenue and total cost.
- 02Read profit, margin and cost ratio.
- 03Use target margin mode when setting a selling price.
What the number means
Profit margin is profit divided by revenue. It answers: what share of the selling price remains after the costs included in this calculation?
Decide which costs belong in the model before comparing products. A gross margin based only on product cost is not comparable with a contribution margin that also includes fulfilment, payment and advertising costs.
Before you rely on the output
What is the difference between margin and markup?+
Margin divides profit by selling price. Markup divides profit by cost. The percentages are different even when cost and price are the same.
Can margin be negative?+
Yes. If cost is higher than revenue, profit and margin are negative.
Does this include tax?+
Only if the revenue and cost values you enter include tax. Use one consistent basis for both numbers.