Profit Margin Calculator

Use this calculator to work out your profit margin based on revenue and cost.

Formula

Profit Margin (%) = ((Revenue - Cost) / Revenue) × 100

Example

If your revenue is 1000 and your cost is 700:

• Profit = 300
• Profit Margin = 30%

Why it matters

Profit margin helps you understand how much of each sale you actually keep after costs.

Common use cases

• Pricing products
• Planning discounts
• Comparing suppliers
• Checking whether a product line is worth keeping