Profit Margin Calculator – Complete Guide & Free Online Tool
A profit margin calculator computes your profit and margin percentage from revenue and cost: margin = profit / revenue × 100. Free online tool included.
Published 2026-09-13
What is Profit Margin Calculator?
A profit margin calculator computes your profit and margin percentage from revenue and cost: margin = profit / revenue × 100.
Formula
Profit = revenue − cost. Margin (%) = (profit / revenue) × 100. A higher margin means a larger share of revenue is profit.
Key Features
• Profit amount • Margin percentage • Instant results
Examples
• Revenue $5 • 000 and cost $3 • 500 → profit $1 • 500 • margin 30%.
Common Use Cases
• Pricing • Business analysis • Financial planning
Tips & Best Practices
• Compare margins across products to find the most profitable.
Limitations
• Use consistent definitions of cost for accurate results.
External Resources
Investopedia: Profit Margin