How it works
Use this tool with clear assumptions
Profit margin is one of the clearest measures of business health because it shows how much of each sale remains after costs.
Use this calculator when pricing a product, comparing suppliers, reviewing service packages, or checking whether a campaign produced meaningful profit.
Formula / logic
Profit margin = (revenue - cost) / revenue * 100. Markup = (revenue - cost) / cost * 100.
Example
If revenue is $1,000 and cost is $650, profit is $350 and margin is 35%.