Business ToolsProfitability ToolsFree Tool
Profit Margin Calculator
Calculate your profit amount and profit margin percentage from total revenue and total cost.
How to Use Profit Margin Calculator
- 1Enter your total revenue
- 2Enter your total cost
- 3Click Calculate to see your profit amount and profit margin percentage
Frequently Asked Questions
This tool reports a single margin % (and rupee profit) from your revenue and cost. Margin vs Markup Calculator computes both markup % and margin % side by side from a cost/price pair, specifically to compare the two metrics.
It's a generic margin calculation: (revenue − cost) ÷ revenue. Whether that represents gross, operating, or net margin depends on what you count as 'cost' — include only COGS for gross margin, or all operating expenses for operating margin.
It varies enormously by industry — grocery/retail margins are often under 5%, while software/services margins can exceed 20-30%. Compare against your specific industry benchmark rather than a universal target.
No — this is a pre-tax calculation. Your net profit after income tax will be lower than the margin shown here.
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