Profit Margin Calculator — Gross Margin, Net Margin & Markup Free Online
Calculate profit, revenue, gross and net margin, and markup — pick the mode that matches what you already know.
Enter Cost & Revenue
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.
Related: Break-even Calculator to find the minimum volume needed to turn a profit, or Small Business Financial Tracker for a full P&L view.
Typical margin benchmarks
Frequently Asked Questions
Is the Profit Margin Calculator free?
Yes — completely free. No account and no data sent to a server.
Does it store my data anywhere?
No. All calculations happen in your browser. Nothing is transmitted to any server.
Do I need an account?
No account, no login, and no signup required.
What is the difference between margin and markup?
Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. A 30% margin on $100 revenue means $30 profit and $70 cost. A 30% markup on $70 cost gives $91 revenue and a 23% margin — not 30%. They are easy to confuse and produce different numbers from the same inputs.
What is a healthy profit margin?
It depends heavily on industry. Software companies often operate at 60–80% gross margin. Retail e-commerce runs 20–45%. Restaurants operate at 3–15%. Comparing your margin to your industry benchmark matters more than any single number.
What is the difference between gross and net margin?
Gross margin only subtracts the direct cost of producing your product or service (COGS). Net margin also subtracts all operating expenses — rent, salaries, marketing, software — giving a true picture of bottom-line profitability.