35.00% is the example result. Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost.
Check how much of your revenue remains after the costs you include. Use one sales period and identify the expenses behind the total before you treat the percentage as a profit measure.
What your margin includes
The result is a share of revenue. At the supplied example values, 10,000 in revenue less 6,500 in costs leaves 3,500, or 35%. It describes the costs entered here. Call it net margin only if that cost total includes every expense required by your accounting definition.
When to use this result
Use this before accepting a revised quote. Compare the expected margin with the delivery costs that may change after the sale. A profitable invoice can still create a cash gap if the customer pays after your supplier.
Check before you act
Margin and markup use different denominators. Adding 35% to cost does not produce a 35% selling margin. Revenue of zero makes this margin undefined.
Example with the supplied inputs
Revenue: 10000; Total cost: 6500. Result: 35.00%. The values are illustrative.
Compare one changed input
Revenue changes from 10000 to 11000. The result becomes 40.91%. All other inputs remain fixed.
Calculation rule
Margin (%) = (revenue or price − modeled cost) ÷ revenue or price × 100. When EBITDA is supplied, use EBITDA ÷ revenue × 100.
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Revenue | 10000 | Use revenue on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Total cost | 6500 | Use total cost on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 35.00% is the example result. Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Revenue, Total cost. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Revenue on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 35.00%.
Change Revenue from 10000 to 11000 while keeping every other value fixed. The result becomes 40.91%. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026