Profit Margin Calculator
Gross margin, net margin, and markup from revenue and cost inputs.
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About this tool
Profit margin measures how much of every dollar of revenue you keep as profit. Gross margin is (Revenue − COGS) / Revenue and tells you how efficiently you produce. Net margin is (Revenue − all costs) / Revenue and tells you overall business health. Different industries have very different margin norms — software 70%+, restaurants 3-9%, grocery 1-3%.
Formula & notes
Gross margin = (Revenue − COGS) / Revenue × 100. Net margin = (Revenue − COGS − OpEx − Taxes) / Revenue × 100. Markup = (Price − Cost) / Cost × 100 (different from margin!). A 50% markup is only a 33% margin. This calculator computes all three so you can quote/price correctly.
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