📊 Margin Calculator Classic
Calculate profit margin percentage
How to Use This Calculator
Enter Revenue/Selling Price
Input the revenue or selling price - the amount you charge customers for the product or service.
Enter Cost
Enter the cost - the amount you paid or spent to produce or acquire the product or service.
Review Profit Margin
See the profit amount and profit margin percentage. Use this to understand profitability and pricing strategy.
Formula
Profit = Revenue - Cost
Profit Margin = (Profit / Revenue) × 100
Example Calculation:
If revenue $100, cost $60:
• Profit = $100 - $60 = $40
• Profit margin = ($40 / $100) × 100 = 40%
About Margin Calculator Classic
A classic profit margin calculator helps you calculate profit margin percentage - the portion of revenue that becomes profit. This is the classic, straightforward calculation method that calculates margin directly from revenue and cost. Profit margin is a key metric for assessing business profitability and pricing strategy. It shows how much profit you make for each dollar of revenue.
When to Use This Calculator
- Pricing Strategy: Calculate profit margins for pricing decisions
- Profitability Analysis: Assess business profitability
- Product Analysis: Compare profit margins across products
- Business Planning: Plan pricing and profit goals
Understanding Profit Margin
- Gross Margin: Profit margin using revenue and cost of goods sold
- Net Margin: Profit margin after all expenses
- Margin Calculation: Margin = (Profit / Revenue) × 100
- Industry Benchmarks: Profit margins vary by industry
Why Use Our Calculator?
- ✅ Profit Calculation: Calculate profit margins accurately
- ✅ Pricing Strategy: Make informed pricing decisions
- ✅ Profitability Analysis: Assess business profitability
- ✅ Business Planning: Plan profit goals and pricing
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that becomes profit. It's calculated as (Profit / Revenue) × 100. For example, if you sell something for $100 and your cost is $60, your profit is $40, and your profit margin is 40%. Profit margin shows how much profit you make for each dollar of revenue.
What's the difference between margin and markup?
Margin is profit as a percentage of selling price (revenue), while markup is profit as a percentage of cost. For example, with cost $60 and price $100: Profit = $40, Margin = 40% (profit / price), Markup = 66.7% (profit / cost). Margin is more useful for pricing because it represents profit as a percentage of revenue.
What's a good profit margin?
A good profit margin depends on your industry, business model, and goals. Generally, 10-20% is considered good for most businesses, but margins vary significantly by industry. Retail may have 2-5% margins, while software may have 80%+ margins. Compare your margins to industry benchmarks.
How do I increase profit margin?
You can increase profit margin by: (1) Increasing prices (if market allows), (2) Reducing costs (negotiate better deals, improve efficiency), (3) Focusing on high-margin products/services, (4) Reducing waste and inefficiencies, (5) Improving pricing strategy. This calculator helps you see the impact of price and cost changes.