Profit Margin Calculator
The same 8,000 profit is 40% of revenue but 66.7% of cost. Which one is meant is almost always the real question.
Your numbers
Margin
40%
Profit
8,000
Markup
66.7%
Formula
Margin = (Sale price − Cost) ÷ Sale price × 100
Leave marketplace fees and card fees out of your cost and the real margin will be lower than this.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| CostWhat it cost you to buy or make. Sale price minus this is profit. | 12,000 | 0 and up |
| Sale priceWhat you actually hand over at the till, after the discount. | 20,000 | 0 and up |
Step by step
Quick reference table
Results when only Cost changes and everything else stays put.
| Cost | Margin (%) | Profit | Markup (%) |
|---|---|---|---|
| 6,000 | 70 | 14,000 | 233.3 |
| 9,000 | 55 | 11,000 | 122.2 |
| 12,000 | 40 | 8,000 | 66.7 |
| 18,000 | 10 | 2,000 | 11.1 |
| 24,000 | -20 | -4,000 | -16.7 |
What each result means
| Result | At default values |
|---|---|
| Margin (%)Profit divided by the sale price. It can never exceed 100%. | 40 |
| ProfitSale price minus cost. | 8,000 |
| Markup (%)Profit divided by cost. This one can exceed 100%. | 66.7 |
Common mistakes
Leave marketplace fees and card fees out of your cost and the real margin will be lower than this.
Glossary
- Cost
- What it cost you to buy or make. Sale price minus this is profit.
- Sale price
- What you actually hand over at the till, after the discount.
- Margin
- Profit divided by the sale price. It can never exceed 100%.
- Profit
- Sale price minus cost.
- Markup
- Profit divided by cost. This one can exceed 100%.
Frequently asked questions
Q. How is Profit Margin Calculator calculated?
Margin = (Sale price − Cost) ÷ Sale price × 100 — The same 8,000 profit is 40% of revenue but 66.7% of cost. Which one is meant is almost always the real question.
Q. Can you walk through an example?
With Cost 12,000, Sale price 20,000, the answer is Margin 40%.
Q. What do I need to enter?
Enter Cost, Sale price. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Cost moves the answer to Cost 6,000 → Margin (%) 70 and Cost 24,000 → Margin (%) -20. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Leave marketplace fees and card fees out of your cost and the real margin will be lower than this.
Related calculators
Tax rates and interest conventions differ by country and product — check your contract for real transactions.