Enter revenue and costs to instantly see profit, profit margin, and markup — free, no sign-up needed.
Using the calculator above takes less than a minute. It needs only two numbers — your total revenue and your total costs — and instantly returns your profit in dollars, your profit margin as a percentage of revenue, and your markup as a percentage of costs. Follow these steps:
Tips for accurate results: keep revenue and costs in the same currency and the same time period, enter costs fully loaded rather than just the product cost, and remember that the margin answers how much of each sales dollar you keep while the markup answers how much you add on top of costs. Because the calculator runs entirely in your browser, your numbers never leave your device.
Profit is the money a business keeps after paying all of its costs. If you sell $10,000 of products and spend $7,000 making, delivering, and supporting them, your profit is $3,000. Profit is the single most important number in business because it pays owners, funds growth, services debt, and keeps the lights on. A company can survive weak sales for a while, but it cannot survive without profit for long.
Revenue, also called sales or turnover, is the total money coming in before any costs are subtracted. It is the top line of the income statement. Revenue tells you how much customers paid you, but it says nothing about how much you kept. A business with $1 million of revenue and $990,000 of costs is far weaker than one with $200,000 of revenue and $120,000 of costs, even though the first looks five times bigger.
Costs are everything you spend to earn that revenue: materials, inventory, labor, rent, shipping, payment processing fees, marketing, software subscriptions, insurance, and taxes. Costs split into direct costs that scale with each sale, such as ingredients or wholesale goods, and fixed costs like rent that stay the same each month. Missing costs is the most common reason profit looks better on a spreadsheet than it does in the bank account, so be thorough when you add them up.
Margin expresses profit as a percentage of revenue. A $3,000 profit on $10,000 of revenue is a 30 percent profit margin. Margin lets you compare businesses of wildly different sizes: a lemonade stand and a factory can both earn 30 percent margins even though their dollar profits differ enormously. Margins also reveal trends — a falling margin means costs are growing faster than sales, which is an early warning sign.
Markup expresses the same profit as a percentage of costs. A $3,000 profit on $7,000 of costs is a 42.86 percent markup. Retailers usually think in markup when setting prices — buy for $70, mark up 42.86 percent, sell for $100 — and then convert to margin to judge the business as a whole. The two numbers always describe the same profit; they just use different denominators.
Profit comes in layers, and it helps to know which layer you are measuring. Gross profit subtracts only the direct cost of goods sold from revenue and shows whether the core product economics work. Operating profit also subtracts overhead such as rent, salaries, and marketing. Net profit subtracts everything, including interest and taxes, and is the famous bottom line. This calculator works at whichever layer you feed it: enter gross revenue and cost of goods sold to see gross profit, or total revenue and every expense to see net profit.
Profit also differs from cash flow. A profitable business can still run out of cash if customers pay slowly while suppliers demand payment upfront, and a loss-making business can survive for a time on savings or loans. Profit measures economic performance over a period; cash flow measures money moving in and out. Watch both, but judge the health of the business model on profit.
Three simple formulas cover nearly every profit question you will ever face:
Worked example 1: online store month. An online store sells $24,000 of goods in March. Its costs total $16,500: $11,000 for inventory, $2,500 for shipping, $1,800 for advertising, and $1,200 for platform fees. Step one, profit: $24,000 − $16,500 = $7,500. Step two, margin: $7,500 ÷ $24,000 × 100 = 31.25 percent. Step three, markup: $7,500 ÷ $16,500 × 100 = 45.45 percent. The store keeps about 31 cents of every sales dollar, and it prices its goods about 45 percent above cost on average.
| Measure | Calculation | Result |
|---|---|---|
| Profit | $24,000 − $16,500 | $7,500 |
| Profit margin | $7,500 ÷ $24,000 × 100 | 31.25% |
| Markup | $7,500 ÷ $16,500 × 100 | 45.45% |
Worked example 2: freelancer project. A designer charges a client $4,800 for a website. Her costs are $900 for subcontracted copywriting, $300 for stock assets and fonts, and $200 for project software — $1,400 in total. Profit: $4,800 − $1,400 = $3,400. Margin: $3,400 ÷ $4,800 × 100 = 70.83 percent. Markup: $3,400 ÷ $1,400 × 100 = 242.86 percent. Service businesses often show very high margins because the owner’s own time is not counted among the project costs. That is fine for pricing decisions, but remember to value your hours when you judge whether the business itself is healthy — a topic covered in the mistakes section below.
Example 1: the bakery’s wholesale contract. A bakery sells 2,000 loaves a month at $4 each, giving revenue of $8,000. Flour, yeast, packaging, and delivery cost $3,100, and the baker’s assistant costs $1,700, so total costs are $4,800. Profit is $8,000 − $4,800 = $3,200, a 40 percent margin. Now a grocery chain offers to buy 1,000 extra loaves a month at $3 each — $3,000 of new revenue. The extra ingredients, packaging, and delivery cost $1,550, and the assistant can handle the extra volume within current hours, so no extra labor cost is needed. Profit on the contract alone is $3,000 − $1,550 = $1,450, a 48.33 percent margin. Total profit rises from $3,200 to $4,650 even though the wholesale price per loaf is lower than the retail price. The lesson: judge new business on its incremental profit, not on its price alone. Fixed costs that are already covered make extra volume unusually profitable.
Example 2: the subscription app price test. An app charges $12 a month and has 5,000 subscribers, so monthly revenue is $60,000. Servers, customer support, and payment fees total $18,000, giving profit of $42,000 — a 70 percent margin. The founder considers raising the price to $15 and expects 10 percent of users to cancel, leaving 4,500 subscribers. New revenue would be 4,500 × $15 = $67,500. Costs stay almost flat because software scales cheaply, rising only to $18,600. New profit is $67,500 − $18,600 = $48,900, a 72.44 percent margin. The price rise adds $6,900 of monthly profit despite losing 500 customers. Software margins behave the opposite of the bakery: every extra user costs almost nothing, so pricing power flows almost entirely into profit. Try both scenarios in the calculator above by entering each revenue and cost pair and comparing the profit lines.
Keep analyzing your numbers with these free tools. The Profit Margin Calculator breaks margin and markup down per product from cost and selling price. The Markup Calculator handles cost-plus pricing scenarios in detail. The ROI Calculator measures the return on a specific investment or campaign. The Sales Tax Calculator shows what customers actually pay at checkout. You can also browse the full Financial Calculators collection to find every money tool in one place.
This page provides a Profit Calculator that computes three outputs from two inputs. Inputs: revenue in dollars, total costs in dollars. Outputs: profit equals revenue minus total costs; profit margin percent equals profit divided by revenue times 100; markup percent equals profit divided by costs times 100. Default example: revenue 10000, costs 7000, profit 3000.00 dollars, margin 30.00 percent, markup 42.86 percent. Key definitions: profit is revenue minus costs; revenue is total money in before costs; costs are all spending required to earn revenue; margin is profit as a share of revenue; markup is profit as a share of costs. Page sections: usage steps, concept definitions, formula derivations with two worked examples, two practical business examples, five common mistakes, related calculator links, and eight frequently asked questions.
Subtract total costs from total revenue: Profit = Revenue − Costs. For example, $10,000 of revenue minus $7,000 of costs equals $3,000 of profit. Enter both numbers in the calculator above for an instant result.
Profit margin = (Revenue − Costs) ÷ Revenue × 100. With $10,000 of revenue and $7,000 of costs: ($10,000 − $7,000) ÷ $10,000 × 100 = 30%. Margin tells you what share of each sales dollar you keep.
Margin divides profit by revenue, while markup divides profit by costs. The same $3,000 profit is a 30% margin on $10,000 of revenue but a 42.86% markup on $7,000 of costs. Retailers often set prices with markup, then judge the business with margin.
It depends on the industry. Around 10% net margin is healthy for many businesses, 20% or more is strong, and software or service businesses often exceed 50%. Compare your margin with competitors in your own industry rather than with businesses in general.
Yes. When costs exceed revenue, profit is negative — that is a loss. The calculator above shows it as a negative dollar amount with negative margin and markup percentages. A short-term loss can be planned, for example during a launch, but it cannot continue forever.
No. Revenue is the total money coming in before any costs are subtracted; profit is what remains after costs. A business can have huge revenue and zero profit, which is why investors and lenders focus on profit and margin, not sales alone.
Raise prices, cut costs, sell more to higher-margin customers, or drop unprofitable products and clients. Because margin and markup move differently, test each idea in the calculator above before committing to see exactly how profit responds.
For net profit, yes — include income tax in costs. For operating profit, stop before tax. The key is consistency: match the cost layer to the profit layer you want to measure, and label which one you are reporting.
Cite this page
APA: Sigma Calculator. (2026). Profit Calculator. https://sigmacalculator.net/financial-calculators/profit-calculator/
MLA: “Profit Calculator.” Sigma Calculator, 2026, https://sigmacalculator.net/financial-calculators/profit-calculator/.
Chicago: Sigma Calculator. “Profit Calculator.” Accessed October 8, 2026. https://sigmacalculator.net/financial-calculators/profit-calculator/.
Last updated: October 8, 2026