Calculate profit, margin and markup
Calculate profit, profit margin and markup from revenue and total costs.
Profit margin = (Revenue - Costs) / Revenue x 100.
How to use the Profit Margin Calculator
Calculate profit, profit margin and markup from revenue and total costs.
Formula and method
Profit = Revenue - Cost; profit margin = Profit / Revenue x 100; markup = Profit / Cost x 100.
Example
$10,000 revenue and $7,000 total costs produce $3,000 profit and a 30% profit margin.
Planning examples
These examples are mathematical scenarios designed to help with planning. They are not claims about typical market performance.
| Use | Recommendation |
|---|---|
| Planning | Use your own recent data whenever possible. |
| Comparisons | Keep the same definition and time period across comparisons. |
| Benchmarks | Treat public benchmarks as context rather than guarantees. |
How to interpret the result
Use a consistent definition of cost. Gross, contribution and net margins include different cost layers.
Frequently asked questions
Does this tool use an external API?
No. The calculation runs from the values you enter.
Is the result a guarantee?
No. It is a mathematical planning result based on your inputs.
Can I use my own real data?
Yes. Your own recent account or business data is usually the best input.
Can I compare different platforms?
Use caution because metric definitions and monetization models can differ by platform.