Profit Margin Calculator

Calculate gross profit and margin from revenue and cost.

Enter your values

Change any field. The result is recalculated on this device.

Formula, example and assumptions
Profit margin30%
Indian rupees
Indian rupees

Your result

Local calculation
Profit margin30%

Profit is revenue minus the costs you enter; margin expresses that profit as a share of revenue. Use matching revenue and costs for the same product, order or reporting period.

Revenue
₹1,00,000
Cost
₹70,000
See how this is calculated

Result breakdown

Gross profit
₹30,000.00
Cost as share of revenue
70%
Check the inputs and method

These are your current inputs, not the worked example further down the page.

Revenue
₹1,00,000
Cost
₹70,000

Method

Profit = revenue − cost. Profit margin (%) = 100 × profit ÷ revenue. Cost share (%) = 100 × cost ÷ revenue. Revenue must be positive; costs above revenue produce a negative margin.

Read the worked example and assumptions

How this calculation works

Use margin to see how much of each rupee of sales remains after the costs you include. Enter revenue and matching costs for one product, order batch or reporting period. A product-cost-only calculation is a gross margin; including operating overhead changes what the profit figure represents. Compare the same cost basis across periods before treating a higher percentage as an improvement.

Profit = revenue − cost. Profit margin (%) = 100 × profit ÷ revenue. Cost share (%) = 100 × cost ÷ revenue. Revenue must be positive; costs above revenue produce a negative margin.

Worked example

This example uses illustrative inputs. Your current result is shown above.

For ₹80,000 revenue and ₹60,000 matching costs, profit is ₹20,000. Margin is ₹20,000 ÷ ₹80,000 × 100 = 25%, and costs consume 75% of revenue. A 25% margin therefore leaves ₹25 per ₹100 of sales before any costs omitted from the input.

Assumptions and limits

  • Revenue and costs cover the same sales and period, using a consistent treatment of recoverable taxes.
  • The calculator subtracts only the entered costs; it does not infer salaries, returns, financing costs or income tax.

Questions people ask

Why is margin different from markup?

Margin divides profit by revenue; markup divides it by cost. Use Markup to compare both denominators for an individual selling price.

Can the margin be negative?

Yes. When costs exceed positive revenue, the result measures a loss as a share of revenue. Zero revenue cannot provide a meaningful percentage denominator.

Related calculators