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Profit Margin Calculator

Calculate gross profit and margin from revenue and direct costs.

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Adjust the values below to get a clear estimate.

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Profit as a share of revenue

Subtract the entered cost from revenue to get profit. Divide by revenue—not by cost—to express profit as a margin percentage.

Profit = revenue − cost; margin % = profit / revenue × 100

Worked example

Revenue less direct costs

Inputs: revenue: 25,000 · cost: 17,500

Illustrative result: Profit 7,500 · margin 30%

Thirty percent of the entered revenue remains after subtracting the entered costs.

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Good to know

Frequently asked questions

Is margin the same as markup?

No. Margin divides profit by revenue; markup divides profit by cost. The two percentages use different bases.

Can margin be negative?

Yes. If costs are above revenue, the calculation reports a negative profit and margin.