Profit = Revenue − Cost
Margin percentage = Profit ÷ Revenue × 100
Alternative form:
Margin = (Revenue − Cost) ÷ Revenue × 100
Other useful formulas:
Margin measures profit as a percentage of revenue. It differs from markup, which measures profit as a percentage of cost. For example, a 60% markup produces a 37.5% margin—not a 60% margin.
Enter any two values—cost, margin, revenue, or profit—and this margin calculator finds the other two instantly.
Margin = (Revenue − Cost) ÷ Revenue × 100
A margin calculator finds your profit margin — the percentage of revenue that’s actual profit after cost. Enter any two of cost, revenue, profit, or margin and it works out the rest.
It varies by industry see the verified benchmark table above. As a rough guide, below 5% is thin and 20%+ is healthy for many businesses, but software and services run structurally higher than retail or restaurants.
Input cost and revenue in two cells, subtract to get profit, then divide profit by revenue and format as a percentage.
