Calculate profit amount
Total revenue
Total cost
Profit amount
Profit amount = Total revenue − Total cost
Use this to see the amount left after costs are deducted from revenue.
Gombo Tools
Margin Calculator
Use this free margin calculator to estimate your profit amount and margin rate from total cost and total revenue. Enter your costs and revenue to see how much profit remains after covering costs. It is useful for products, services, projects, and overall business performance checks.
Result overview
Total revenue
100,000
Total cost
60,000
Profit amount
40,000
Margin rate
40%
How to calculate profit margin
Profit margin shows what percentage of revenue remains as profit after costs. It helps you understand how much of each sale is kept after covering the cost of delivering the product or service.
Calculate margin rate
Profit amount
Total revenue
100
Margin rate
Margin rate = Profit amount ÷ Total revenue × 100
Use this to understand profit as a percentage of revenue.
Margin and markup are different. Margin compares profit to revenue, while markup compares profit to cost.
How to use this calculator
- Enter your total cost
- Enter your total revenue
- Review the profit amount
- Review the margin rate
- Use the result to compare products, services, or business periods
Examples
Product margin
- Total revenue
- 100,000
- Total cost
- 60,000
- Profit amount
- 40,000
- Margin rate
- 40%
A 40% margin means 40% of revenue remains as profit before other costs, depending on what you included in total cost.
Service margin
- Total revenue
- 500,000
- Total cost
- 350,000
- Profit amount
- 150,000
- Margin rate
- 30%
A 30% margin means 30% of revenue remains after covering the costs included in the calculation.
Tips
Be clear about which costs you include.
Use cost of goods sold for gross margin.
Use operating costs for operating margin.
Compare margins across products, services, or periods.
Review margins when supplier prices, salaries, or delivery costs change.
Want to track margins without manual calculations?
Gombo helps you create invoices, track revenue, organize costs, and monitor business performance from one connected platform.