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

Related Tools

Frequently Asked Questions

What is profit margin?
Profit as a percentage of revenue: (revenue − cost) / revenue × 100.
How is profit calculated?
Revenue minus cost.
Is it free?
Yes, and it runs locally.

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