Margin Calculator
Work out profit and profit margin as a percentage of revenue.
Result
Enter any two values and Numerila will work out the third.
Formula:
Using your values:
Worked example
Something that costs 70 and sells for 100 makes a profit of 30. The margin is 30 ÷ 100 × 100 = 30%: the profit is 30% of the selling price. Entering a 30% margin with a cost of 70 gives the selling price of 100.
How we calculated this
Profit is revenue minus cost, and margin is the profit as a percentage of revenue (the selling price). It is not the same as markup, which is the profit as a percentage of cost; use the Markup Calculator for that. If the cost is higher than the revenue, the profit and margin are negative, which is a loss.
The three boxes are linked by one relationship, so any two give the third: margin = (revenue − cost) ÷ revenue × 100, cost = revenue × (1 − margin ÷ 100), and revenue = cost ÷ (1 − margin ÷ 100). Margin needs a revenue above zero, because it divides by revenue, and a margin cannot be more than 100%, because that would need a negative cost. This is a plain profit-margin calculation; it does not cover trading margin or any accounting treatment.
A result written as a plain number is exact. A result starting with “≈” has been rounded to 10 significant figures, because its exact decimal never ends or is too long to read comfortably. When an exact value is long, its full digits are shown underneath. The calculation itself is never rounded: only the display is.
What this result means
The box marked Calculated holds whichever of the cost, the revenue (the selling price) or the margin the other two determine, and the result shows the profit. The margin is the profit as a percentage of revenue, and a negative figure means a loss.
Common mistakes
- Confusing margin with markup: margin divides the profit by the selling price, markup divides it by the cost, so the same profit gives a smaller margin than markup.
Assumptions and limitations
- Revenue must be more than zero, and a margin cannot be more than 100%. This is a simple profit margin and does not cover trading margin or any accounting treatment.