What is a Profit Margin and Markup Calculator?
Separate profit margin on sales from markup on cost. Use comparable tax-exclusive revenue/cost figures; negative margins show losses.
Use the inputs that describe your actual situation. Change one assumption at a time, compare the results, and read the scope note alongside the number. The tool calculates a stated scenario; it does not decide whether an investment, policy or tax treatment is suitable for you.
Method and assumptions
Use comparable tax-exclusive revenue/cost figures; negative margins show losses.
Read the result with these boundaries
Use comparable tax-exclusive revenue/cost figures; negative margins show losses.
Check the inputs before acting
Confirm actual costs, dates, eligible amounts and product terms from your records. Compare a conservative case and an adverse case rather than relying on the default inputs. A result can change substantially when return, tax, contribution or cost assumptions change.
Frequently asked questions
What does this tool calculate?
Separate profit margin on sales from markup on cost. Margin = profit / revenue; markup = profit / cost
What is outside its scope?
Use comparable tax-exclusive revenue/cost figures; negative margins show losses.
Are the default inputs a recommendation?
No. Defaults are worked scenarios. Use your own verified amounts and test more than one assumption.