Free Profit Margin Calculator
This profit margin calculator shows what share of revenue is real profit, the number lenders, investors and owners watch first. Enter revenue and total cost to get margin %, the equivalent markup %, and profit in rand. It is designed for pricing reviews, monthly performance checks, and quote sanity-checks.
How it works
Margin = (revenue − cost) ÷ revenue × 100. Unlike markup (which divides by cost), margin divides by revenue, so the same sale always shows a lower margin than markup. The tool reports both so the pair can be compared directly.
Example
| Revenue | Cost | Margin | Markup |
|---|---|---|---|
| R10,000 | R7,000 | 30% | 42.86% |
Frequently asked questions
How is profit margin calculated?
Subtract cost from revenue, divide by revenue and multiply by 100. R10,000 revenue and R7,000 cost gives 30% margin.
What is the difference between margin and markup?
Margin divides profit by revenue; markup divides profit by cost. A 30% margin on R10,000 equals a 42.86% markup on R7,000.
What is a good profit margin?
It varies widely by industry, compare against businesses like yours rather than a universal target.
Can margin exceed 100%?
No. Margin is profit as a share of revenue, so it tops out just under 100%. Markup has no ceiling.
Is my data uploaded?
No. All calculations happen locally in your browser.
Related tools
- Markup Calculator, price from cost the other way round.
- Gross Profit Calculator, isolate production profit.
- Break-Even Calculator, find the sales you need.
- Guide: Profit Margin vs Markup