Business Math Utility
Profit Margin Calculator
Calculate profit amount, profit margin, and markup from selling price or revenue and cost.
Calculate margin and markup
Margin and markup are not the same
Profit = revenue − cost.
Margin = profit ÷ revenue × 100.
Markup = profit ÷ cost × 100.
Worked example
At a selling price of 100 and cost of 60, profit is 40. Profit margin is 40 ÷ 100 = 40%. Markup is 40 ÷ 60 ≈ 66.67%.
Why the two percentages differ
Margin uses revenue as its denominator, while markup uses cost. The same profit therefore produces different percentages because it is being compared with a different base.
Limitations
The meaning of “cost” depends on the business context. This calculator does not decide which direct costs, overhead, taxes, fees, labor, returns, or accounting classifications should be included. It is not a net-income statement.
Privacy
The values are processed locally in the browser.
Common questions
Can profit be negative?
Yes. If cost exceeds revenue, the profit and percentages will be negative.
Why require nonzero cost and revenue?
Margin divides by revenue and markup divides by cost, so those denominators must be nonzero.
For organizations
If you operate a website, learning resource, agency project, or developer platform and want to evaluate this utility as a maintained embed, see publisher use cases and agency use cases. PTH Embed is currently a controlled beta with selective qualified tools and aggregate usage metering.