Profit Margin Calculator
Calculate gross profit margin, net profit margin, and markup percentage. Enter cost and revenue to see your margins with a full breakdown of profit, cost ratio, and markup.
Disclaimer: This calculator provides estimates for educational purposes only. It does not constitute financial advice. Consult a qualified financial professional for business decisions.
Quick Facts
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How to Use This Calculator
- Enter your total revenue (sales income) in the Revenue field.
- Enter your cost of goods sold (COGS) in the Cost field.
- Click Calculate to see your gross margin, markup, and profit.
- Review the breakdown showing margin percentage, markup percentage, and dollar profit.
- Use the results to compare against industry benchmarks in the Quick Facts sidebar.
The Formula
Gross Margin = ((Revenue - Cost) / Revenue) x 100. Markup = ((Revenue - Cost) / Cost) x 100. Gross Profit = Revenue - Cost.Frequently Asked Questions
Profit margin is your profit as a percentage of revenue (selling price). Markup is your profit as a percentage of cost. For example, if you buy for $60 and sell for $100, your margin is 40% (40/100) but your markup is 66.7% (40/60). Margin is always lower than markup for the same transaction.