What this tool is for
Profit Margin Calculator handles a focused business planning job: calculate gross profit margin from revenue and cost. It is intentionally narrow so the formula and example stay visible beside the tool.
When to use it
Use it when you want to verify profit margin quickly, compare a few values, or explain the calculation to someone else without opening a spreadsheet.
Input notes
- Enter values that match the units or dates requested by the form.
- Use the reset state as a quick reference when you want to see a normal profit margin example.
- Review the limitation note before using the result outside a quick estimate.
Formula
profit margin = ((revenue - cost) / revenue) x 100
Worked example
If revenue is 100 and cost is 65, margin is ((100 - 65) / 100) x 100 = 35%.
What the result means
The output follows profit margin = ((revenue - cost) / revenue) x 100. The worked example shows the same calculation with real values: If revenue is 100 and cost is 65, margin is ((100 - 65) / 100) x 100 = 35%.
Limitations
This is a simple gross margin calculation and is not financial advice. It does not include taxes, overhead, refunds, or payment fees.
Before you rely on the result
Treat the output as a planning estimate. Taxes, refunds, fees, contracts, accounting policy, and local rules can change the real business result.
Privacy note
This page uses browser JavaScript only for the calculation. Marketivate does not need an account, upload, or database entry to produce the result.
Frequently asked questions
Can cost be higher than revenue?
Yes. The result will be a negative margin.
Is this markup?
No. Markup divides profit by cost; margin divides profit by revenue.
Last reviewed: 2026-07-11