Business

Margin & Markup Calculator

Gross, operating and net margin from revenue.

Enter your values

ⓘ Live results

Results
Gross profit
$110000 (44%)
Operating profit
$50000 (20%)
Net profit
$39500 (15.8%)
Cost ratio
80%

Quick answer

Gross margin is (revenue − COGS) ÷ revenue; net margin subtracts operating costs and tax as well.

Margin = profit ÷ revenue × 100

How to use the Margin & Markup Calculator

  1. 1Enter total revenue for the period.
  2. 2Enter cost of goods sold and operating expenses.
  3. 3Add your tax rate for net margin.

Worked example

Using the values the calculator loads with:

Inputs

  • Revenue250000 $
  • Cost of goods sold140000 $
  • Operating expenses60000 $
  • Tax rate21 %

Results

  • Gross profit$110000 (44%)
  • Operating profit$50000 (20%)
  • Net profit$39500 (15.8%)
  • Cost ratio80%

Frequently asked questions

What is a healthy net margin?

It varies hugely: grocery retail runs 1–3%, services 10–20% and software often 20–40%.

Why track gross margin separately?

Gross margin shows whether the product itself is profitable, before overheads — it's the first number investors check.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.