Business

Profit Margin Calculator

Gross, net and markup from revenue and cost.

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ⓘ Live results

Results
Gross margin
38%
Net margin
23%
Gross profit
$3,800.00
Net profit
$2,300.00
Markup on cost
61.29%

Quick answer

Profit margin is profit divided by revenue; markup is the same profit divided by cost, which is always the larger number.

Margin = (revenue − cost) ÷ revenue × 100

How to use the Profit Margin Calculator

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

Worked example

Using the values the calculator loads with:

Inputs

  • Revenue10000 $
  • Cost of goods sold6200 $
  • Other operating expenses1500 $

Results

  • Gross margin38%
  • Net margin23%
  • Gross profit$3,800.00
  • Net profit$2,300.00
  • Markup on cost61.29%

Frequently asked questions

Margin vs markup?

Margin divides profit by revenue; markup divides the same profit by cost. A 50% markup is only a 33% margin.

What is a good margin?

It is industry specific: grocery runs 2–3% net, software often 20%+, and restaurants typically sit between 3% and 9%.

About this calculator

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