Profit margin expresses profit as a share of sales revenue.
Margin Calculator
Margin Form
Results
Margin
Table of Contents
1
What is Margin Calculator ?
2
How to Use This Calculator
- Enter or select Cost, Revenue.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
3
Formula Used
Margin (%) = (revenue−cost)/revenue × 100
4
Variables Explained
| Input | What it means |
|---|---|
| Cost | The cost amount included by this calculation; keep it on the same basis as the selling amount. |
| Revenue | Sales or operating income before the costs specified in the calculation are deducted. |
5
Worked Example
Revenue of 100 with cost of 60 gives profit of 40 and margin of 40%.
6
Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
7
Common Mistakes
- Markup uses cost as the denominator; margin uses revenue.
8
Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
9
Sources & References
Mini Calculator provides online calculators for multiple niches including mathematical, financial, Health, informative, Chemistry, physics, statistics, and conversions. You can use any calculator for free without any limits.