How this calculator works
Profit is the amount left after subtracting the cost from the revenue. Profit percentage measures that profit relative to the cost: ((Revenue - Cost) / Cost) * 100. It answers the question "For every dollar I spent, how many cents of profit did I make?"
Profit percentage is different from profit margin. Profit margin divides profit by revenue, not cost. For example, buying for $40 and selling for $60 gives a $20 profit. That is 50% profit (20 / 40 * 100) but only 33.33% margin (20 / 60 * 100). Markup is also different: markup is the percentage added to cost to get the selling price. A 50% markup on $40 gives a $60 selling price, but the profit margin on that sale is 33.33%, not 50%.