Profit Margin Calculator
Calculate the gross profit margin and profit from any revenue and cost figures. Enter the selling price and cost below to get the profit margin percentage instantly.
How It Works
Profit margin expresses profit as a percentage of revenue. It tells you how much of each pound of revenue you keep after covering the cost. A higher margin means more profit relative to the selling price.
The Formula
Profit = Revenue − Cost
Profit Margin = (Profit ÷ Revenue) × 100
Profit Margin vs Markup
Profit margin is calculated on revenue (selling price), while markup is calculated on cost. For example, if you buy for £60 and sell for £100, the profit is £40. The profit margin is 40% (£40 ÷ £100), but the markup is 66.7% (£40 ÷ £60). Use the Markup Calculator if you want to work from cost upwards.
Worked Examples
Example 1: Revenue £100, Cost £60
Profit = £100 − £60 = £40. Margin = (£40 ÷ £100) × 100 = 40%
Example 2: Revenue £250, Cost £175
Profit = £250 − £175 = £75. Margin = (£75 ÷ £250) × 100 = 30%
Example 3: Revenue £50, Cost £42.50
Profit = £50 − £42.50 = £7.50. Margin = (£7.50 ÷ £50) × 100 = 15%
Example 4: Revenue £1,200, Cost £900
Profit = £1,200 − £900 = £300. Margin = (£300 ÷ £1,200) × 100 = 25%
Example 5: Revenue £79.99, Cost £24.00
Profit = £79.99 − £24.00 = £55.99. Margin = (£55.99 ÷ £79.99) × 100 = 70%
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