Free Online Margin Calculator

A profit margin calculator computes margin and markup from revenue and cost, printing both side by side for easy comparison.

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Margin = (revenue − cost) / revenue × 100
Markup = (revenue − cost) / cost × 100

Estimates only. For business decisions, factor in operating expenses, taxes, and any volume-based costs not captured here.

How to Use This Calculator

  1. Enter the revenue (selling price) in the first input.
  2. Enter the cost of goods or services sold in the second.
  3. Read the profit amount, profit margin %, and markup % in the result panel.

What Is a Margin Calculator?

Margin and markup are two ways to express the same profit. Margin = (revenue − cost) ÷ revenue × 100. Markup = (revenue − cost) ÷ cost × 100. For the same numbers markup is always larger — a 50% markup is only a 33.3% margin, and a 100% markup is a 50% margin.

Margin uses revenue as the denominator and is what investors care about because it scales with revenue. Markup uses cost as the denominator and is what buyers and pricing managers quote because cost is what they directly negotiate. Confusing the two is the single most common pricing mistake in retail and SaaS.

This tool shows both at once. Enter revenue and cost, read profit, margin %, and markup %. Useful when negotiating with a supplier who quotes markup while your spreadsheet expects margin, or vice versa.

Frequently Asked Questions

What does profit margin mean?
Profit as a percentage of revenue. Margin = (revenue − cost) / revenue × 100.
What's the difference between margin and markup?
Margin = profit / revenue. Markup = profit / cost. Same numbers, different denominators. Markup is always higher.
What's a good profit margin?
Varies by industry. 10% is decent for retail; 20%+ for services. Net margin accounts for all expenses.

Published by the WeGotEveryTool team. We build and test every tool in-house and update pages when the underlying spec, formula, or recommendation changes.

Reviewed: May 2026. Disclaimer: this tool is provided as-is for general informational use. For decisions with material consequences (medical, legal, financial, security) verify results against a qualified professional source.

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