Why margin matters
Margin represents the percentage of revenue that remains after subtracting the cost of goods sold. A higher margin indicates better profitability and stronger pricing power.
Margin Calculator
Calculate cost, revenue, profit, and profit margin instantly with responsive inputs, clear results, and smart live formulas.
Finance Toolkit
Profit & Margin Analysis
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Profit Margin
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Cost Percentage
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Revenue
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Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue left after costs are deducted. It shows how efficiently a business turns sales into profit.
How is margin calculated?
Margin is calculated as profit divided by revenue, multiplied by 100.
What is the difference between margin and markup?
Margin is based on revenue, while markup is based on cost. A 50% margin is not the same as a 50% markup.
What is a good profit margin?
It depends on the industry. Retail businesses often target lower margins, while software and services businesses may aim for much higher ones.