Profit Margin Calculator
Calculate profit margin as a percentage of selling price.
Assumptions used in this calculation
- Cost basis: Cost is treated as the full cost of the item (e.g. COGS); it doesn't separately factor in overhead, payment processing fees, or other indirect costs unless you include them in the cost figure.
About this calculator
Profit margin and markup are both "profit as a percentage" but measured against different bases, and confusing the two is one of the most common pricing mistakes small businesses make, sometimes leading to prices that look profitable on paper but leave far less cash than expected. This calculator takes a selling price (revenue) and a cost, and computes margin as (Revenue − Cost) ÷ Revenue × 100, the percentage of each sale that's actually profit after covering cost. It's the figure lenders, investors and accountants typically mean by "margin," and it's what determines how much cushion a business has if costs rise or prices need to be discounted. Instead of manually subtracting cost from revenue and dividing by hand, or mixing margin up with markup and misjudging true profitability, this calculator gives an instant, accurate percentage you can use to price products, compare product lines, or sanity-check whether a deal is actually worth taking.
Worked example
Sold for ₹1,000, cost ₹700
Result: Margin = 30%
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