Margin Calculator
Enter revenue and the costs included in your chosen scope. Margin uses revenue as the denominator; markup uses cost. Keep that distinction when comparing results.
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Result
- Profit
- 400
- Margin
- 40
Values stay in this page memory. Copy the result before leaving or refreshing.
Formula
profit margin = (revenue − cost) ÷ revenue × 100
Worked example
Revenue 100 minus cost 80 gives profit 20. Margin is 20/100 = 20%; markup on the same sale is 20/80 = 25%.
How to interpret the result
Enter revenue and the costs included in your chosen scope. Margin uses revenue as the denominator; markup uses cost. Keep that distinction when comparing results.
Before you use the result
Revenue zero makes the margin ratio undefined. The result includes only the costs you enter; it does not automatically include taxes, overhead or financing.
How to use the Margin Calculator
- 1 Enter the values for the calculation.
- 2 Review the formula and worked example below the form.
- 3 Copy the result before leaving or refreshing.
Frequently asked questions
Why are margin and markup different?
They use different denominators. A profit of 20 on revenue 100 is a 20% margin; against cost 80 it is a 25% markup.
Can margin be negative?
Yes. If entered costs exceed revenue, profit and margin are negative. Review the period and cost scope before interpreting it.