How to use Profit Margin Calculator
Profit margin tells you how much of revenue remains after the costs you enter. The denominator is revenue. Costs exceeding revenue produce a negative margin, indicating a loss.
The result’s meaning depends on your cost definition. Enter cost of goods sold for a gross-margin check, or include the expenses needed for a wider profit measure. Keep costs and revenue in the same period and use a consistent tax basis.
The formula
A worked example
Revenue (₹): 100000 · Relevant costs (₹): 70000
Profit margin: 30%
Margin uses revenue as its denominator. Include only the costs relevant to the margin you want to measure.
Questions about this calculation
Is margin the same as markup?
No. Margin divides profit by revenue; markup divides profit by cost.
Can a margin be negative?
Yes. It is negative when relevant costs exceed revenue.
Formula checks: 2026-10-08. Assumptions & corrections.