Profit Margin Calculator
Calculate profit, revenue, gross and net margin, and markup — pick the mode that matches what you already know.
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Results update instantly. Add operating expenses to see net figures.
Profit Margin Formulas Explained
Revenue − Cost of Goods Sold (COGS)(Gross Profit ÷ Revenue) × 100Gross Profit − Operating Expenses(Net Profit ÷ Revenue) × 100(Gross Profit ÷ Cost) × 100Cost ÷ (1 − Margin % ÷ 100)Margin vs. Markup — what's the difference?
Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. A 30% margin is not the same as a 30% markup — a 30% margin on a $100 item means $30 profit and $70 cost, whereas a 30% markup on a $70 cost gives $91 revenue and only a 23% margin.
Gross vs. Net margin
Gross margin only subtracts the direct cost of producing or buying the product (COGS). Net margin also subtracts operating expenses — rent, salaries, marketing, software — giving a true picture of bottom-line profitability. Add your operating expenses above to unlock net figures.
Typical margin benchmarks