Simple sale
Revenue is $12,000 and cost is $7,500.
Profit is $4,500 and margin is 37.50%.
This shows the share of revenue that stays after costs.
Profit Margin Calculator
Use this when you want to see how much of your revenue is still left after the costs are paid.
Inputs
Profit Margin Calculator
See how much profit you keep after costs.
Live result
$4,500.00
Results
Profit
$4,500.00
What you keep after costs.
Margin
37.50%
Profit as a share of revenue.
Markup
60.00%
How much you add on top of cost.
Quick take
A quick read before you calculate
Use this when you want to see how much of your revenue is still left after the costs are paid.
See where the money stays
This quick snapshot shows the three numbers that matter most before you decide whether a price is worth it.
Example snapshot
See where the money stays
Money stays
Revenue $12k
Revenue100%
Cost62.5%
Profit37.5%
Revenue
$12k
Cost
$7.5k
Profit
$4.5k
Revenue
$12k
Cost
$7.5k
Profit
37.5%
Formula
Profit margin formula
Examples
2-3 real scenarios to make the result easier to trust.
FAQ
Clear answers to the questions people usually ask first.
Formula
Profit margin formula
Profit = Revenue - Cost. Margin = Profit ÷ Revenue × 100. Markup = Profit ÷ Cost × 100.
It gives you both the profit amount and the percentage view so you can price with more confidence.
Examples
Lower-cost job
Revenue is $5,000 and cost is $3,200.
Profit is $1,800 and margin is 36.00%.
A similar margin can still be healthy on a smaller project.
Tight pricing
Revenue is $9,000 and cost is $8,100.
Profit is $900 and margin is 10.00%.
This is a useful warning sign that the offer may be underpriced.
When to use
Use it when reviewing a sale, checking a pricing model, or comparing two offers with different cost structures.
Common mistakes
- Using gross revenue and ignoring the real cost of delivery.
- Confusing margin with markup.
- Comparing profits without checking whether the revenue level is the same.
FAQ
What is the difference between margin and markup?
Margin compares profit to revenue. Markup compares profit to cost.
Can profit be negative?
Yes. If costs are higher than revenue, the calculator will show a loss instead of profit.
Next step
Want cleaner numbers in one place?
QuickBooks or Xero can help you keep revenue, costs, and profit together instead of spread across separate tabs.
Recalculate margin whenever your pricing or supplier cost changes.