Enter values and select Calculate.
Calculated result
How to use this calculator
- Choose known revenue and cost or target-margin mode.
- Enter ordinary non-negative monetary values.
- For target mode, enter a margin below 100%.
- Compare the primary margin result with the equivalent markup only when defined.
Formula and method
Profit = revenue − cost. Margin = profit ÷ revenue × 100. Target price = cost ÷ (1 − target margin rate).
Worked example
Revenue of $100 and cost of $60 produce $40 profit and a 40% margin. A $60 cost with a 40% target margin requires a $100 selling price.
Assumptions and boundaries
- Revenue is the denominator for margin.
- Cost means the cost value supplied by the user, not a prescribed accounting definition.
- A target margin of 100% or more has no finite non-negative selling price.
- A loss is valid and displays as negative profit and margin.
Understanding the result
The calculator preserves full finite arithmetic through the calculation and formats ordinary money to two decimal places for display. Percentages can retain additional useful decimal precision. It never evaluates expressions or silently adds tax, fees, exchange rates, or recommendations.
Common mistakes
- Dividing profit by cost and calling it margin
- Entering 40 as 0.40
- Using zero revenue as a percentage base
- Treating the result as pricing or accounting advice
Methodology note
This deterministic browser-local utility uses only the formulas stated above and the values you supply. It provides arithmetic, not financial, investment, pricing, accounting, tax, or tipping advice.
Check source values and required precision before using a result in a purchase, invoice, business record, or other decision.