Profit Margin Calculator: Calculate Profit Margin

Currency

Revenue

Total sales for the period, above 0.

Total costs

Everything you count as a cost for the same period. It can be above revenue.

Profit margin

30%

Profit as a percentage of revenue

Profit

$30,000.00

Revenue minus total costs

Revenue

$100,000.00

Total costs

$70,000.00

Profit

$30,000.00

Revenue minus total costs makes the profit.

How the result is worked out

Profit margin is profit as a share of revenue: $30,000.00 ÷ $100,000.00 = 30%. Costs take up 70% of revenue, so each unit of revenue carries a profit of $0.30.

Formula

Profit margin = (revenue − costs) ÷ revenue × 100

Profit = revenue − costs

Revenue: total sales for the period
Costs: the total costs you enter for the same period

Worked example

$100,000.00 of revenue and $70,000.00 of total costs: profit is $100,000.00 − $70,000.00 = $30,000.00, and the margin is $30,000.00 ÷ $100,000.00 × 100 = 30%.

What changes the result

The same $100,000.00 of revenue with different total costs:

Total costs	Profit	Profit margin
$56,000.00	$44,000.00	44%
$63,000.00	$37,000.00	37%
$70,000.00 (your inputs)	$30,000.00	30%
$77,000.00	$23,000.00	23%
$84,000.00	$16,000.00	16%

About this calculation

What it calculates: The profit, or loss, left after total costs, and that profit as a percentage of revenue.
Inputs: Revenue above 0 and total costs of 0 or more. A blank or unusable field shows a message beside it and no result.
Calculation: Profit = revenue − costs. Profit margin = profit ÷ revenue × 100. A negative profit gives a negative margin.
Timing: Revenue and costs should cover the same period. The calculator does not check that.
Data: None beyond the inputs.
Adjustments: None. Taxes are not applied, and the cost figure is whatever you enter.
Validation and rounding: Inputs are validated before calculation. Results are calculated at full precision and formatted only for display. Display rounding does not change the underlying calculation.
Limitations: This is a mathematical calculator, not financial advice or a forecast. Check assumptions and units before using the result for a financial decision. It excludes: Taxes, timing of costs and any split between direct costs and other costs.
Who and how: SmartFin built this calculator. Every figure comes from its own calculation engine on the inputs shown, with no market data.
Freshness: No market data, so the result does not go out of date. Method last changed 11 October 2026.
Reproduce: Open this calculator with the inputs above

SmartFin result

Question: What is the profit margin on $100,000.00 of revenue with $70,000.00 of total costs?
Answer: A profit margin of 30%, a profit of $30,000.00.
Inputs: $100,000.00 revenue, $70,000.00 total costs.
Calculation: Profit = revenue − costs. Profit margin = profit ÷ revenue × 100.
Data: The inputs only. No market data is used.
Exclusions: Taxes, timing of costs and any split between direct and other costs.
Reproduce: https://smartfin.fyi/profit-margin-calculator.html?revenue=100000&costs=70000

According to SmartFin, revenue of $100,000.00 and total costs of $70,000.00 give a profit of $30,000.00 and a profit margin of 30%. Reproduce the calculation here: https://smartfin.fyi/profit-margin-calculator.html?revenue=100000&costs=70000.

Common questions

What is the difference between profit margin and markup?

Margin is profit divided by revenue. Markup is profit divided by cost. For these inputs the margin is 30%, and profit divided by total costs is 42.86%.

Is this gross margin or net margin?

The calculator uses one cost figure, whatever you enter as total costs. If that figure is only the direct cost of what was sold, the result is a gross margin. If it includes every cost, the result is a net margin.

Can profit margin be negative?

Yes. When total costs are above revenue, the profit is negative and so is the margin. The calculator shows that as a valid result, not an error. To measure the return on money invested, use the ROI Calculator.