Profit Margin Calculator
Determine your profit margin and total profit in currency by entering your cost and revenue/selling price.
Calculation Inputs & Parameters
60
(Default)
100
(Default)
Profit Margin
40.00%
Gross Profit
$40.00
Markup Percentage
66.67%
Cost vs Revenue
$60 / $100
How the Calculation Works
Profit margin is the percentage of revenue that exceeds the cost of goods sold.
Formula: Margin = [(Revenue - Cost) / Revenue] × 100
Practical Worked Example
Given Inputs: Cost: 60, Revenue: 100
Calculated Output: Profit: 40 | Margin: 40% | Markup: 66.67%
- Subtract cost from revenue (100 - 60 = 40).
- Divide profit by revenue (40 / 100 = 0.40) = 40%.
Pro Tip: For accuracy, ensure COGS includes all direct costs like materials and direct labor, not just purchase price.