How to use Profit Margin Calculator
- Enter your selling price or total sales in the Revenue (> 0) field, for example 50000.
- Enter the costs you want to include in Relevant total cost, such as 38000. Use cost of goods for gross margin or all expenses for net margin.
- Press Calculate to see Margin (%) and Profit.
- Change the revenue or cost to test different prices or discounts.
- Copy the result, or press Reset to clear both fields.
Supported formats and limitations
- Input
- Numbers typed into the form (plain digits, no currency symbols or thousands separators)
- Output
- Result on screen, with one-click copy
- Works on
- Any modern browser on Windows, macOS, Linux, Android and iOS. JavaScript must be enabled.
Important limitations
Results use standard formulas and floating-point arithmetic, shown to a sensible number of decimals. They are estimates for planning and do not replace professional financial, tax, medical or legal advice. Banks and institutions may round differently.
Privacy and file processing
Everything runs in your browser. Nothing you enter is uploaded, stored or logged by this website.
About Profit Margin Calculator
A profit margin calculator shows how much of every rupee of sales you actually keep. Enter your revenue, meaning the selling price or total sales, and the relevant cost, and the tool returns your profit along with the margin as a percentage of revenue. Use it for a single product, a month of sales or a whole project.
It suits shop owners, resellers, freelancers, D2C brands and students learning business maths. Include only the cost of goods to get gross margin, or include every expense such as rent, salaries and shipping to get net margin; the tool simply uses whatever cost you enter. If costs exceed revenue, it shows a negative profit and margin, so you can spot loss-making items quickly.
Features
- Calculates profit and margin percentage together
- Works for gross or net margin, depending on the cost you enter
- Shows negative margin and profit when you are making a loss
- Accepts decimal values in any currency; results shown with 2 decimals and Indian digit grouping
- Validates that revenue is above zero and cost is not negative
Why use it
- Price products with a clear target margin in mind
- Spot loss-making products or orders instantly
- Compare the profitability of different items or months
- Quick, private and free, with nothing to download
Formula used
Profit = revenue−cost; margin = profit/revenue×100%.
Examples
Monthly shop margin
Input: Revenue 50000, Relevant total cost 38000
Result: Margin (%): 24.00
Profit: 12,000.00
You keep ₹12,000, or 24 paise of every rupee sold.
Margin on a single product
Input: Revenue 799, Relevant total cost 520
Result: Margin (%): 34.92
Profit: 279.00
Each sale earns ₹279, a margin of about 34.92%.
Loss-making order
Input: Revenue 1000, Relevant total cost 1150
Result: Margin (%): -15.00
Profit: -150.00
The negative figures show a loss of ₹150 on this sale.
Profit Margin Calculator: frequently asked questions
How do you calculate profit margin?
Subtract the cost from revenue to get profit, then divide the profit by revenue and multiply by 100. For revenue of ₹50,000 and cost of ₹38,000, profit is ₹12,000 and the margin is 12,000 ÷ 50,000 × 100 = 24%. The calculator does both steps and shows profit and margin together.
What is the difference between margin and markup?
Margin divides profit by the selling price, while markup divides profit by the cost. A product bought for ₹520 and sold for ₹799 has a profit of ₹279, a margin of about 34.9% but a markup of about 53.7%. The two are often confused when setting prices; this tool calculates margin only.
Should I calculate gross margin or net margin?
Both are useful. Gross margin uses only the direct cost of the goods or service sold and shows how profitable the product itself is. Net margin subtracts every expense, including rent, salaries, marketing and taxes, and shows how profitable the business is overall. Enter the matching cost figure in the calculator for whichever one you need.
What is a good profit margin?
There is no single answer, because margins vary widely by industry. Grocery and distribution businesses often run on thin margins, while software, services and branded products can earn much higher ones. Compare your margin with similar businesses and your own history rather than a universal number, and treat this calculator's output as arithmetic, not financial advice.
Can the margin be negative?
Yes. If your cost is higher than your revenue, the tool shows a negative profit and a negative margin. For example, revenue of ₹1,000 against a cost of ₹1,150 gives Margin (%): -15.00 and Profit: -150.00. Revenue must be greater than zero, and cost cannot be negative.
Results are estimates for general information, not financial, medical, legal, tax or property advice. Confirm important figures with the relevant institution or a qualified professional.