💹 Margin Calculator
Calculate profit margin from cost and revenue
How Margin Calculation Works
Formula
Margin % = ((Revenue − Cost) / Revenue) × 100
- 1Enter the cost (what you paid) and selling price (what you charge).
- 2The calculator subtracts cost from revenue to find profit.
- 3Profit is divided by revenue and multiplied by 100 to get the margin percentage.
- 4The result tells you what percentage of revenue is profit.
- 5Higher margins indicate more profit retained per dollar of revenue.
About Margin Calculator
Calculate profit margin, cost, and revenue instantly. Determine gross margin, net margin, and markup from cost and selling price. Essential tool for business owners and accountants.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is the percentage of the selling price that is profit, while markup is the percentage added to the cost. A 50% markup results in a 33.3% margin.
What is a good profit margin?
It varies by industry. Retail averages 2-5%, software 70-90%, and restaurants 3-9%. Compare your margin to industry benchmarks for meaningful analysis.
How do I calculate margin from cost and selling price?
Subtract cost from selling price to get profit, then divide profit by selling price and multiply by 100. For example, cost $60, price $100: margin = (40/100) × 100 = 40%.