Profit Margin Calculator
Understand margin and markup without mixing the two.
Profit margin
An illustration based on your inputs, not a quote or recommendation.
Read the formula and assumptions below before making a decision.
Profit Margin: worked example
This is an illustrative scenario using the default inputs, not your personal result. Amounts use AED for illustration; the general formula also accepts your own figures in the selected currency.
| Input | Example value |
|---|---|
| Revenue | AED 50,000.00 |
| Total costs | AED 35,000.00 |
Profit margin: 30%
- Profit: AED 15,000.00
- Markup on cost: 42.86%
Before you use this estimate
Match costs with the revenue period and decide whether you are measuring gross or net profit. Do not describe markup on cost as margin on revenue.
Why are margin and markup different?
Margin divides profit by revenue. Markup divides profit by cost. With revenue of 100 and cost of 80, profit is 20, margin is 20% and markup is 25%.
How the calculation works
Assumptions & limitations
Use costs for the same period and scope as revenue. Label your result gross or net depending on which costs you include.
Use the result thoughtfully
Try a second scenario to see how a change in costs, timing or contributions affects the result. Keep all amounts in one currency and use consistent periods. Confirm important figures against your own records before acting.
Last reviewed: 3 November 2026 · Method and example review by CashOrbits.
Full precision is used for calculations; displayed amounts are rounded.