Use our free Profit Margin Calculator to quickly work out how much profit you're making and what percentage of your revenue or selling price that profit represents. Simply enter your revenue and costs to calculate your profit and profit margin instantly.

To calculate your profit margin, enter your revenue or selling price and the cost associated with generating that revenue.

The calculator will then show you:

Profit
The difference between your revenue and costs.

Profit Margin
The percentage of your revenue that remains as profit after costs have been deducted.

For example, if you sell something for £1,000 and your costs are £700, your profit is £300 and your profit margin is 30%.

Simply enter your figures and click Calculate to see your results.

Profit margin shows how much of your revenue remains as profit after costs have been deducted. It is expressed as a percentage of your revenue or selling price.

The calculation is:

Profit ÷ Revenue × 100

For example:

• Revenue: £1,000
• Costs: £700
• Profit: £300

£300 ÷ £1,000 × 100 = 30%

This means that for every £1 of revenue, 30p remains as profit.

Although they are often confused, profit margin and markup are calculated differently.

Profit margin calculates profit as a percentage of the selling price or revenue.

Markup calculates profit as a percentage of the cost.

For example, if something costs £70 and sells for £100:

Profit = £30
Profit Margin = 30%
Markup = approximately 42.86%

They can look similar, but they answer two different questions.