Profit Margin Calculator

Measure product and service profitability with a fast margin analysis tool.

This Profit Margin Calculator helps users estimate gross profit, profit margin, markup, and cost ratio using revenue or selling price together with total cost. It is useful for pricing decisions, quote preparation, product analysis, retail planning, e-commerce listings, and service-based work.

The tool is designed for a practical question many users have before setting or approving a price: after cost is removed, how much profit remains and how strong is the margin? By showing multiple profitability metrics together, it helps users avoid focusing only on revenue while ignoring the cost structure behind it.

What can this tool help with?

• Calculate gross profit from revenue and cost
• Measure profit margin as a percentage of revenue
• Compare markup against margin for pricing analysis
• Review cost ratio to understand cost weight
• Test product, offer, and service pricing scenarios quickly

How to use it

1. Enter revenue or selling price.
2. Enter total cost.
3. Select the currency.
4. Review gross profit, margin, markup, and cost ratio.

FAQ

What is profit margin?

Profit margin is profit divided by revenue, expressed as a percentage.

What is markup?

Markup is profit divided by cost, so it shows how much was added on top of cost.

Why compare both?

Margin and markup answer different pricing questions, so seeing both gives a clearer profitability picture.