Profit Margin Calculator - Calculate Profit & Markup

How This Profit Margin Calculator Works

This calculator uses standard financial formulas to determine your Cost, Revenue, Profit, and Margin %. You can enter any two values, and we will automatically calculate the other two.

Formulas Used

$$ \text{Profit} = \text{Revenue} - \text{Cost} $$ $$ \text{Margin%} = \frac{\text{Profit}}{\text{Revenue}} \times 100 $$ $$ \text{Revenue} = \frac{\text{Cost}}{ 1 - \frac{\text{Margin%}}{100} } $$ $$ \text{Cost} = \text{Revenue} - \text{Profit} $$ $$ \text{Markup%} = \frac{\text{Profit}}{\text{Cost}} \times 100 $$

Example Calculation

If the Cost is \( \\$60 \) and the Revenue is \( \\$80 \):

$$ \text{Profit} = 80 - 60 = \\$20 $$ $$ \text{Margin%} = \frac{20}{80} \times 100 = 25\% $$ $$ \text{Markup%} = \frac{20}{60} \times 100 \approx 33.33\% $$

These formulas are widely used in business accounting and can help you better understand your financial performance. For a detailed guide, refer to the U.S. Small Business Administration Finance Guide .