The profit margin calculator computes margin, net profit, and profit percentage or markup based on the cost and revenue.
The following formula is used:
Profit Margin (%) = ((Revenue - Cost) ÷ Revenue) × 100
A product costs $170, and the selling price is $300. Find the profit margin.
Apply the values in the formula:
= ((300 - 170) ÷ 300) × 100
= (130 ÷ 300) × 100
= 0.4333 × 100
= 43.33%
A business earns $50,000 in sales, and the cost of goods is $23,000.
= ((50,000 - 23,000) ÷ 50,000) × 100
= (27,000 ÷ 50,000) × 100
= 0.54 × 100
= 54%
Formula used:
Markup (%) = ((Revenue - Cost) ÷ Cost) × 100
A person buys a product for $70 and sells it for $120. Find the markup.
Apply the values in the formula:
= ((120 - 70) ÷ 70) × 100
= (50 ÷ 70) × 100
= 0.7143 × 100
= 71.43%