Calculator
Profit Margin Calculator
Calculate profit and profit margin from revenue and cost.
Result
Profit
$18,000.00
Profit margin
36%
How to use this calculator
What this calculator does
Calculate profit and profit margin from revenue and cost.
How to use it
Enter your revenue and cost, then review the result, formula, example, and FAQs below. Try a few scenarios to see which inputs move the result most.
What the result means
Use the result as a direct calculation from the values you entered. If it looks off, check the inputs and formula shown on this page.
Browse more business calculators for related estimates and comparisons.
Business results are estimates for planning and education. They are not business, legal, tax, employment, accounting, or financial advice.
Scenario guidance
When to use this
Use this when you want to understand how much of revenue remains after costs for a product, project, or period.
Example scenario
A business owner is reviewing a monthly sales campaign and wants to compare revenue against direct campaign costs.
Inputs that usually matter most
- Revenue, because margin is measured as a share of revenue.
- Cost, which should match the cost scope you want to analyze.
- Consistent time period, so revenue and cost describe the same project, month, or offer.
Common mistake to avoid
Do not mix gross, operating, and net costs in the same comparison unless you are clear about which margin you are calculating.
How to interpret the result
Use profit to see dollars remaining and margin percentage to compare offers, periods, or business lines of different sizes.
Results are estimates based on the inputs provided. They are not accounting, tax, legal, or financial advice.
Formula
Profit is revenue minus cost. Profit margin divides profit by revenue to show profit as a percentage of revenue.
Example profit margin
$50,000 in revenue and $32,000 in cost produces $18,000 in profit and a 36% profit margin.
Frequently Asked Questions
What cost should I enter?
Enter the cost scope you want to measure, such as direct product cost, campaign cost, operating cost, or total cost.
Why is margin undefined when revenue is zero?
Profit margin divides by revenue, so zero revenue makes the percentage undefined.
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