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Calculators

Profit Margin Calculator

Calculate gross profit and gross margin from revenue and cost, including loss-making sales.

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How to use Profit Margin Calculator

See how much of your revenue remains after the cost you enter. Gross margin uses revenue as its denominator, making it useful for comparing sales with different selling prices.

  1. Enter positive revenue or a selling price.
  2. Enter the associated nonnegative cost in the same currency.
  3. Calculate gross profit and profit as a percentage of revenue.

Good to know

  • A zero revenue has no defined profit margin and is rejected. Costs above revenue produce a negative margin.
  • Only the costs entered are included; this is not necessarily net profit.
  • Numbers use JavaScript floating-point arithmetic. Inputs are limited to 1,000 characters and a magnitude of 1 quadrillion. Results are rounded for display.
  • These are arithmetic estimates, not financial or tax advice. No currency conversion, fees, or legally applicable tax rules are included.

Common questions

How is margin different from markup?

Margin divides profit by revenue. Markup divides profit by cost. A cost of 60 and a price of 100 give a 40% margin but about a 66.67% markup.

Can the result be negative?

Yes. A cost greater than revenue indicates a loss and produces a negative gross margin.

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