Profit Margin Calculator
Gross, net and markup from revenue and cost.
Enter your values
Enter the revenue in $.
Enter the cost of goods sold in $.
Enter the other operating expenses in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Gross margin
- 38%
- Net margin
- 23%
- Gross profit
- $3,800.00
- Net profit
- $2,300.00
- Markup on cost
- 61.29%
Quick answer
Profit margin is profit divided by revenue; markup is the same profit divided by cost, which is always the larger number.
Margin = (revenue − cost) ÷ revenue × 100
At a glance
| What it does | Gross, net and markup from revenue and cost. |
|---|---|
| Category | Business |
| Inputs needed | Revenue, Cost of goods sold, Other operating expenses |
| Main output | Gross margin |
| Formula | Margin = (revenue − cost) ÷ revenue × 100 |
| Cost | Free — no sign-up, no download |
How to use the Profit Margin Calculator
- 1Enter total revenue for the period.
- 2Add cost of goods sold and operating expenses.
- 3Read gross and net margin.
Inputs explained
- Revenue($)
- Enter the revenue in $.
- Cost of goods sold($)
- Enter the cost of goods sold in $.
- Other operating expenses($)
- Enter the other operating expenses in $.
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%.
What do I need to enter into the Profit Margin Calculator?
Just 3 values: revenue, cost of goods sold, other operating expenses. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Profit Margin Calculator work out the answer?
Profit margin is profit divided by revenue; markup is the same profit divided by cost, which is always the larger number. It applies the formula Margin = (revenue − cost) ÷ revenue × 100 and shows the working so you can check each step by hand.
Is the Profit Margin Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.