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Profit Margin Calculator

Calculate your profit margins instantly.

The Numbers

Dual-Input Solver

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Efficiency Metric

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Internal Benchmark
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Enter any two values on the left to calculate your profit margins and revenue metrics.

Margin Maximizer

“High volume with low margin is a job. High margin with low volume is a trade. High margin and high volume is an empire. Aim for >40% to fund your scale.”

Once your margin is clear, use the Unit Economics Hub to choose the next step, the Break Even Solver to find the volume threshold, the Discount Lab to protect gross profit, and the CAC Payback Period Calculator before you fund acquisition from thin contribution margin.

Theory of Profit

Master the unit economics that separate the hobbyists from the empire builders.

What is Margin?

Profit margin is the percentage of revenue that remains after subtracting costs. It's a key indicator of business profitability.

Calculate Cost

Cost represents the total expenses required to produce or acquire your product or service.

Revenue Impact

Revenue is the total income from sales. Understanding margins helps optimize pricing strategies.

Target Profit

Set and achieve profit goals by understanding the relationship between cost, price, and margin.

Margin vs. Markup: The Truth

Common confusion that kills small businesses. Know the difference.

Profit Margin

Margin is calculated as a percentage of the selling price. Formula: (Revenue - Cost) ÷ Revenue × 100

Example:

Sell for $100 with a $60 cost = 40% Margin

Markup

Markup is calculated as a percentage of the cost. Formula: (Revenue - Cost) ÷ Cost × 100

Example:

Same numbers above ($100 price, $60 cost) = 66.67% Markup

Metric Alpha: Margin is always less than markup for the same transaction. Scaling requires a deep understanding of your margin profile.