Profit Margin Calculator
Gross, net and markup from revenue and cost.
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Results update instantly as you type — no submit needed.
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.
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%.