# Profit margin calculator

> Free profit margin calculator: enter revenue and cost to get profit, margin as a percent of revenue, and markup as a percent of cost. No sign-up.

Canonical page: https://superbooks.io/tools/profit-margin-calculator/

Profit margin is profit as a share of revenue. Sell for 150 what cost 90 and the profit is 60: a 40% margin, or a 66.67% markup on cost.

Formula: Profit = revenue − cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100.

GET https://app.superbooks.io/api/tools/profit-margin

## Questions

### What is the difference between margin and markup?

Both start from the same profit. Margin divides it by the selling price, markup by the cost. A 50% markup is only a 33.33% margin, so a price set with one in mind and checked with the other comes out wrong.

### Gross margin or net margin?

Enter only the direct cost of what you sold and the result is gross margin. Enter all costs, overheads included, and it is net margin.

### How do I find the price for a target margin?

Divide the cost by one minus the margin: for a 40% margin on a cost of 90, the price is 90 ÷ 0.6 = 150.