How this Profit Margin Calculator works
Profit margin shows what percentage of revenue remains after the selected costs are deducted.
Formula
((Revenue − Cost) ÷ Revenue) × 100
Learn more
Gross Margin vs Net Margin →Worked example
Revenue 1,000 and cost 700 produces 300 profit and a 30% margin.
How to interpret the result
Margin is profit as a share of revenue for the costs entered.
Common mistakes and limits
Do not confuse margin with markup or omit relevant costs.
Frequently asked questions
Is margin the same as markup?
No. Margin is based on revenue; markup is based on cost.
Important note
WorkTools provides general-purpose informational calculations. Verify inputs, definitions, policies and jurisdiction-specific requirements before using a result for financial, payroll, legal or other consequential decisions.