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Business calculator
Profit Margin Calculator
Calculate profit margin and markup from revenue and total cost.
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Editable assumptions
Calculator guide
Separate margin from markup
Use revenue after discounts and refunds, and include every cost covered by the analysis. Margin divides profit by revenue; markup divides the same profit by cost, so the percentages are not interchangeable.
Replace default assumptions with current account data and keep the scope consistent. A result becomes misleading when revenue is measured for one period but costs come from another.
Review each input before using the result for pricing or budgeting. Run at least a base case and a higher-cost case to understand sensitivity.
This calculator is an independent planning tool, not an official statement or professional advice. Confirm platform rates and important decisions with the linked primary sources.
Formula
Separate margin from markup
Use revenue after discounts and refunds, and include every cost covered by the analysis. Margin divides profit by revenue; markup divides the same profit by cost, so the percentages are not interchangeable.
- Profit = revenue − cost; margin = profit ÷ revenue × 100; markup = profit ÷ cost × 100
Worked example
Example: $10,000 revenue and $6,250 cost
Inputs
- Scenario
- Example: $10,000 revenue and $6,250 cost
Results
- Calculated result
- Profit: $3,750; margin: 37.50%; markup: 60.00%
Rounded to two decimals; use the live calculator to change assumptions.
Frequently asked questions
Profit Margin Calculator FAQ
What figures should I enter?
Use current figures from your account, invoices or cost records. Keep all amounts in the same currency and period.
How accurate is the result?
The arithmetic follows the displayed formula. Accuracy depends on whether every relevant cost and rate has been entered.
Can I change the default rate?
Yes. Defaults are examples; platform and business rates should be replaced with the values that apply to you.
Should I test more than one scenario?
Yes. Compare expected and higher-cost scenarios before making a decision.
Is the calculation official advice?
No. It is an independent estimate for planning and should not replace platform statements or professional advice.
Are inputs uploaded?
No. The calculation runs in the browser.
Primary sources
Official references and further reading
U.S. Small Business Administration — Calculate startup costs ↗
Official planning guidance for business costs and break-even preparation.
U.S. Small Business Administration — Manage your finances ↗
Official small-business financial management guidance.
Editorially reviewed: 2026-07-21
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