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Profit Margin Calculator

See profit, margin and markup on cost.

Data updated: 2026-08-12 Content updated: 2026-10-22
Sources

How is it calculated?

Profit = revenue − cost. Margin% = profit / revenue × 100.

margin% = (revenue - cost) / revenue × 100

Official sources

Calculation methodology Report a wrong result

Example

Cost 80, revenue 100 → profit 20, margin 20%.

Guide

Compute gross profit and margin from cost and selling price, and separate margin from markup. Accounting profit needs full expenses.

How margin is calculated

Profit = price − cost; margin = profit / price × 100; markup = profit / cost × 100. VAT inclusion must be consistent.

2026 pricing notes and mistakes

Cost inflation can squeeze margins. Equating margin with markup or ignoring overheads misleads pricing decisions.

Tips

  • Decide VAT-inclusive vs exclusive before calculating.
  • Informational only—use your books for real profit.

Sources: Cost accounting basics · SME guidance

FAQ

Margin vs markup? +

Margin is based on revenue; markup is based on cost.

Next steps