Profit Margin, Markup, Cost & Revenue Calculator

Enter Calculation

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Decimal places 0 1 2 3 4

First known variable Margin only Markup only Profit Cost Revenue

Value 1

Second known variable Margin % Markup % Profit Cost Revenue

Value 2

Calculate with tax, VAT or GST

Tax Percent (%)

Formula

Show calculation steps (1)

1. Margin / markup conversion

   

   Converts between the margin fraction m and markup fraction k.

Results

Profit Margin

33.33%

net margin on revenue

Margin	33.33%
Markup	50%
Profit	$50
Cost	$100
Revenue	$150

What this calculator does

This margin calculator links the five core sales numbers — profit margin %, markup %, profit, cost and revenue. Because these five are joined by exactly two relationships (revenue = cost + profit, and margin = profit ÷ revenue), knowing any two of them lets you solve for the other three. It is pure arithmetic and works in any country; the currency selector only changes the symbol shown next to money values and never converts or rescales numbers.

How to use it

Pick your First known variable and type its value, then pick a different Second known variable and its value. Choose how many decimal places to display. If you need tax, VAT or GST on top of revenue, tick the box and enter a tax percentage. The tool returns margin, markup, profit, cost and revenue, plus the tax amount and tax-inclusive revenue when requested.

The formula explained

Let C = cost, R = revenue, P = profit, with margin fraction \(m\) and markup fraction \(k\). Then \(P = R - C\), \(m = P/R\) and \(k = P/C\). Margin is always below 100% for a real sale, while markup can exceed 100%. To switch between them:

$$m = \frac{k}{1+k} \quad\text{and}\quad k = \frac{m}{1-m}$$

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Margin is profit as a share of revenue; markup is profit as a share of cost.

Worked example

Cost = 100 and revenue = 150. Profit = 150 − 100 = 50.

$$\text{Margin} = \frac{50}{150} = 33.33\%$$$$\text{Markup} = \frac{50}{100} = 50.00\%$$

Add a 10% tax: tax amount = \(150 \times 0.10 = 15.00\), and revenue with tax = \(150 \times 1.10 = 165.00\). Profit, margin and markup stay on the pre-tax basis because tax is a pass-through, not part of profit.

Same profit gives a higher markup % than margin %, since cost is smaller than revenue.

FAQ

What is the difference between margin and markup? Margin measures profit against the selling price (revenue); markup measures the same profit against the cost. The same dollar profit gives a smaller margin than markup.

Why are money values blank if I pick only margin and markup? Margin and markup are both ratios, so without an absolute amount (cost, revenue or profit) there is no way to determine the dollar figures — only the percentages relate.

Does the currency symbol change the math? No. It is cosmetic only; every number stays the same regardless of which symbol you select.