Profit Margin Calculator
Gross, net and markup from revenue and cost.
Enter your values
ⓘ 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
- 1Enter total revenue for the period.
- 2Add cost of goods sold and operating expenses.
- 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
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.