How it works
Margin (%) = (revenue − cost) ÷ revenue × 100
Input definitions
- Revenue
- Enter the value in the labeled unit.
- Cost
- Enter the value in the labeled unit.
A worked example
- Revenue
- 200
- Cost
- 150
25.00
Assumptions & limits
Returns percentage margin on revenue; not markup on cost.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Are tax, overhead and refunds included automatically?
Only the costs and rates explicitly entered or described in the formula are included. Use consistent currencies and periods, and check what your own accounting policy requires.
How does the Profit margin tool work?
Margin (%) = (revenue − cost) ÷ revenue × 100.
What are the assumptions and limits of Profit margin?
Returns percentage margin on revenue; not markup on cost.