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Profit Percentage Calculator (Profit Margin)

Enter cost and revenue to get profit margin, profit in dollars, and markup on cost.

Profit margin

33.33%

Profit
$20.00
Markup on cost
50%
Profit = $60.00 − $40.00 = $20.00
Margin = $20.00 ÷ $60.00 × 100 = 33.33%

Profit margin formula

Profit margin % = (Revenue − Cost) ÷ Revenue × 100

Selling for $60 something that cost $40 leaves $20 profit, which is 33.33% of the $60 revenue.

Profit percentage on cost

Some textbooks define profit percentage on cost instead: $20 ÷ $40 = 50%. That figure is the markup, shown under the result so you can use whichever your class or business expects.

Losses

If cost exceeds revenue, profit and margin turn negative. A $60 cost sold for $40 is a −50% margin.

Questions people ask

What is a good profit margin?

It depends on the industry. Grocery stores often run net margins of 1–3%, while software companies can exceed 20%.

Is profit percentage calculated on cost or selling price?

Business margin uses selling price. Many school problems use cost. This calculator shows both.

How do I find selling price from margin?

Price = Cost ÷ (1 − margin). For a 25% margin on a $30 cost, charge $30 ÷ 0.75 = $40.

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