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Profit Margin Calculator

Free Calculator

Enter your revenue and total cost to see your net profit margin, net profit and markup in seconds β€” privately.

100% private

Runs in your browser β€” no numbers leave your device.

Your numbers

$

Total revenue β€” the money you take in before costs.

$

Total cost β€” what it cost you to earn that revenue.

Net profit margin

40.0%

Net profit divided by revenue β€” the share of each dollar of sales you keep as profit.

Net profit

$4,000

Revenue minus cost β€” the dollars left after paying every cost.

Markup

66.7%

Net profit divided by cost β€” how much you add on top of cost, which is always higher than margin.

How it works

1

Enter revenue

Add the total revenue for the period or the product.

2

Enter cost

Add the total cost of earning that revenue.

3

Read your margin

Profit margin, net profit and markup update live as you type.

4

Compare scenarios

Change price or cost to see how your margin moves.

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How to calculate profit margin

Net profit margin is the share of your revenue you keep as profit. The formula is simple: subtract total cost from revenue to get net profit, then divide net profit by revenue and multiply by 100. So $10,000 of revenue on $6,000 of cost leaves $4,000 of net profit and a 40% profit margin β€” you keep 40 cents of every dollar of sales.

Margin is often confused with markup, but they answer different questions. Margin divides profit by revenue; markup divides the same profit by cost. That same $4,000 profit is a 40% margin on $10,000 of revenue but a 66.7% markup on $6,000 of cost β€” markup is always the larger number. This calculator shows margin, net profit and markup together so you can price with confidence and compare products, campaigns or whole months at a glance.

Frequently asked questions

How do I calculate profit margin?
Subtract total cost from revenue to get net profit, then divide by revenue and multiply by 100. For example, ($10,000 βˆ’ $6,000) Γ· $10,000 Γ— 100 = 40% profit margin. This calculator does it instantly and also shows your net profit and markup.
What is the difference between margin and markup?
Margin divides profit by revenue; markup divides the same profit by cost. A $4,000 profit on $10,000 revenue and $6,000 cost is a 40% margin but a 66.7% markup. Markup is always higher, which is why the two are easy to confuse.
What is a good profit margin?
It depends on your industry, but as a rough guide a net margin above 20% is considered healthy, 10–20% is average, and under 10% is thin. Software and digital products often run much higher, while retail and hardware run lower.
Is this gross or net profit margin?
It depends on the cost you enter. Put in cost of goods sold only and you get gross margin; include all operating costs and you get net margin. The formula is identical β€” margin equals profit divided by revenue either way.