Profit Margin Calculator

How profit margin is calculated

Profit = revenue − cost. Margin = profit / revenue. Markup = profit / cost.

What the result means

Calculate gross profit, profit margin and markup from sales revenue and the cost of goods sold.

Assumptions and scope

This is gross margin before overheads, financing costs and tax. Markup is undefined if cost is zero.

Using the calculator

Enter revenue, cost of goods sold. Change the values to compare results. Calculations run in your browser. No account is required.