BoardroomIQ logoBoardroomIQ
← All tools

Free tool

Profit Margin Calculator

Turn revenue and cost into margin — enter the numbers, get gross margin %, net margin, and profit.

Profit margin

40.0%

Profit as a share of revenue.

Profit$40.00
Markup (profit ÷ cost)66.7%
Practice pricing cases with AI coaching →

The profit margin formula

Profit Margin = (Revenue − Cost) ÷ Revenue × 100. It expresses profit as a share of revenue, so a $60 cost sold for $100 is a 40% margin.

Margin vs. markup

Margin is profit over price; markup is profit over cost. The same dollar profit always shows a lower margin than markup — a distinction that trips up a lot of candidates. This tool shows both.

Margins in case interviews

Pricing and profitability cases live and die on margin math. Being fluent here lets you reason about price changes and cost cuts without reaching for a calculator.

Frequently asked questions

What is the profit margin formula?
Profit Margin = (Revenue − Cost) ÷ Revenue × 100. It expresses profit as a share of revenue. A $50 cost sold for $100 is a 50% margin.
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. The same dollar profit gives a lower margin than markup — a common point of confusion this tool clears up.
Is this profit margin calculator free?
Yes, free and client-side, no login.