Calculate profit margin instantly — enter revenue and cost to see profit amount, margin percentage, and markup. All results update live as you type.
Revenue ($)
Cost ($)
$350
Profit
35%
Profit margin
53.8%
Markup
Frequently Asked Questions
How is profit margin calculated?
Profit margin = ((Revenue − Cost) ÷ Revenue) × 100. For example, $350 profit on $1,000 revenue gives a 35% margin.
What is the difference between margin and markup?
Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. A 35% margin equals roughly a 53.8% markup.
What is a good profit margin?
It varies by industry. Retail often targets 2–10%, software 60–80%, and restaurants 3–9%. Compare against your sector benchmarks.
Can I calculate break-even point too?
Yes. Use the Break-Even Calculator to find how many units you need to sell to cover fixed costs.
Is this tool free and does it work on mobile?
Yes on both counts. The Profit Margin Calculator on draft21 is completely free with no sign-up required and works on all devices.