Finance & Money
Profit Margin Calculator
Use this profit margin calculator to understand how much of each sale remains as profit after cost.
Profit margin
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- Profit
- —
- Cost share of revenue
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Student quick launch
Grade planning, algebra checks, and formulas students reach for most.
Study path
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What the profit margin calculator solves
Use this profit margin calculator to understand how much of each sale remains as profit after cost.
Formula
How to use it
- Enter selling price or revenue.
- Enter cost.
- Read profit dollars and margin percent.
How to read the answer
Margin shows profit as a share of revenue, not as a share of cost.
Common mistakes and edge cases
- Margin is not markup.
- Include all relevant costs for a realistic margin.
- Revenue must be greater than zero.
Worked examples
Product sale
Profit margin
37.50%
Low margin
Profit margin
8.00%
Frequently asked questions
What is a good profit margin?+
It depends on industry, product, and overhead.
How is margin different from markup?+
Margin divides profit by revenue. Markup divides profit by cost.
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Last updated: May 8, 2026