Profit Margin Calculator
Calculate gross profit margin, markup, and net margin from cost, revenue, and expenses. Three views of the same numbers, useful for pricing and product decisions.
Inputs
Used for net margin only.
Gross margin
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Gross profit
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Markup on cost
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Net margin (after opex)
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Net profit
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About Profit Margin Calculator
Margin vs markup
Margin is profit / revenue (always less than 100%). Markup is profit / cost (can be 100% or more). Selling something for 2× cost is 100% markup, but a 50% margin.
Which one to use?
Margin is what customers care about (it’s the share of their payment that’s your profit). Markup is what cost accountants use for pricing — multiply cost by (1 + markup) to get price.
Net vs gross
Gross only subtracts the direct cost of goods sold. Net subtracts all operating costs — rent, salaries, marketing — and is closer to what hits the bottom line.