Pricing & Profit calculator
Profit Margin Calculator
Work out profit and profit margin from revenue and cost so you can price jobs and sales with clearer margin visibility.
Why use it
- Useful when you need to check whether a sale still leaves enough room for overheads and profit.
- A negative margin means the sale is losing money before overhead recovery.
- Results update in your browser only, so the calculator stays static-hosting friendly.
Calculator tool
Use the profit margin calculator
Work out profit and profit margin from revenue and cost so you can price jobs and sales with clearer margin visibility.
Share this result
Email it to yourself, send it to a customer, or copy the figures into a quote — all without an account.
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Important note
BizTools.au is designed to make business numbers easier to check, but calculator outputs still need judgment and real-world context.
- Calculator results are general estimates only and depend on the figures entered.
- Examples and summaries are provided for general information, not legal, tax, accounting, payroll, or financial advice.
- Before relying on a result for a real decision, check your assumptions and get qualified advice where needed.
How it works
Understand the formula before you use the result
The calculator uses a simple working formula so you can sense-check the result quickly and explain it clearly inside your business.
Profit margin formula
Profit = Revenue - Cost
Margin % = (Profit / Revenue) × 100
Margin tells you what share of each sale is left after direct cost. It is different from markup.
Worked example
See the numbers in a realistic scenario
Use the example below as a sense check when you compare the calculator result to a real quote, sale, or pricing decision.
Worked example
Worked example: quoting a $1,000 job
A service business charges $1,000 and expects the direct delivery cost to be $650.
- Revenue: $1,000
- Cost: $650
Calculation steps
- Profit = $1,000 - $650 = $350
- Margin % = ($350 / $1,000) × 100 = 35%
The job leaves $350 before overheads and other business expenses, which is a 35% profit margin.
FAQ
Common questions about the profit margin calculator
These are the practical questions operators usually run into when they apply the result to a real business decision.
What is a good profit margin?
That depends on the industry, risk, rework, and overhead structure. The calculator helps you see the number clearly, but the right target margin still depends on your business model.
Can margin be negative?
Yes. If cost is higher than revenue, profit becomes negative and the margin is negative too. That means the sale is not covering its direct cost.
Is margin the same as markup?
No. Margin measures profit as a percentage of selling price. Markup measures profit as a percentage of cost. The percentages are never the same unless profit is zero.
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