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Profit Margin Calculator

Calculate your profit amount and profit margin percentage from total revenue and total cost.

How to Use Profit Margin Calculator
  1. 1Enter your total revenue
  2. 2Enter your total cost
  3. 3Click Calculate to see your profit amount and profit margin percentage
About Profit Margin Calculator

What it computes

Enter revenue and cost. The tool shows profit (revenue − cost) and margin as a percentage of revenue: (revenue − cost) ÷ revenue × 100.

Example

Revenue Rs. 1,00,000 and cost Rs. 60,000 gives a profit of Rs. 40,000 and a margin of 40%.

Margin versus markup

These are often confused. Margin divides profit by the selling price; markup divides profit by cost. The same sale has a 40% margin but a 66.7% markup (40,000 ÷ 60,000). If you price by adding a markup to cost, the margin will always be lower than the markup. This tool reports margin only.

Limits

  • It is a single gross figure. If cost leaves out overheads, tax or shipping, the result is gross margin, not net margin.
  • Entering zero revenue produces an undefined result.
  • A negative result means a loss, which is shown as a negative margin.

To check marketplace pricing after fees, use the Amazon FBA calculator, and for advertising efficiency the ROAS calculator.

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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