Profit Margin & Markup Calculator

Calculate gross profit margin, net profit margin, and markup percentage instantly. Enter revenue and costs to see all key profitability metrics. Works for any business type.

Mathematical Audit

Profit Margin & Markup Formulas

Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. These are different ratios and should not be confused.

Gross Profit = Revenue − COGS
Gross Margin % = (Gross Profit / Revenue) × 100
Markup % = (Gross Profit / COGS) × 100
Net Profit = Revenue − COGS − Operating Expenses
Net Margin % = (Net Profit / Revenue) × 100
Selling Price from Markup = Cost × (1 + Markup % / 100)
Selling Price from Margin = Cost / (1 − Margin % / 100)

A 50% markup is NOT the same as a 50% margin. A 50% markup on a $10 cost gives a $15 price (33% margin). A 50% margin on a $10 cost gives a $20 price (100% markup).

Operational Guide

How to Use the Profit Margin & Markup Calculator

1

Enter your total revenue (or selling price)

Input total sales revenue for the period, or a single selling price if calculating for one item.

2

Enter Cost of Goods Sold (COGS)

COGS is the direct cost to produce or purchase the goods/services sold: materials, labor, and direct overhead.

3

Enter operating expenses (optional)

For net margin, add operating expenses: rent, salaries, marketing, utilities, and other indirect costs.

4

View gross margin, net margin, and markup

All three profitability metrics are calculated simultaneously so you can see the full picture.

Real-World Scenario Example

"An e-commerce store sells $50,000/month with $28,000 COGS and $12,000 operating expenses."

Inputs

revenue:50000
cogs:28000
operatingExpenses:12000

Result

Gross Profit = $22,000. Gross Margin = 44%. Markup = 78.6%. Net Profit = $10,000. Net Margin = 20%.

Important Disclaimer

Margin and markup calculations are based on inputs provided. Consult an accountant for precise financial analysis and tax planning.

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Sources & References

Investopedia — Gross Profit Margin

https://www.investopedia.com/terms/g/gross_profit_margin.asp

SBA — Financial Ratios for Small Business

https://www.sba.gov/business-guide/manage-your-business/manage-your-finances