Independent finance learning
Profit Margin Calculator
Calculate gross, operating or net profit margin from revenue and profit, with examples and an explanation of margin versus markup.
Try the numbers
Formula and inputs
Profit margin = profit ÷ revenue × 100
Select a profit measure, then enter revenue and that profit from the same period. Revenue must be positive; profit may be negative.
Worked example
£20,000 of net profit on £200,000 of revenue gives a net margin of 10%.
Assumptions and limitations
The choice of gross, operating or net profit changes the interpretation. This is a margin calculation, not markup; classifications must come from the underlying accounts.
Understand the result
How to calculate profit margin: gross, operating and netSources and further reading
Sources checked 4 October 2026. Worked examples are fictional HC teaching illustrations.