Profit margin calculator
Turn revenue and costs into gross margin, net margin, markup, and net profit.
Total sales for the period.
Direct costs of what you sold — materials, product, direct labor.
Overhead not tied to a unit — rent, marketing, admin, software.
Enter your revenue to see your gross margin, net margin, markup, and net profit.
Gross vs. net profit margin
Gross margin tells you how profitable your product is before overhead: revenue minus the direct cost of goods sold. Net margin is the bottom line — what's left after you also pay operating expenses like rent, marketing, and admin.
Watching both matters. A healthy gross margin with a thin or negative net margin means your product works but your overhead is too heavy for your current sales.
Frequently asked questions
- What is the difference between gross margin and net margin?
- Gross margin is revenue minus the direct cost of goods sold, as a percentage of revenue. Net margin goes further and also subtracts operating expenses like rent and marketing — it's what you actually keep.
- How do I calculate profit margin?
- Gross margin % = (revenue − COGS) / revenue × 100. Net margin % = (revenue − COGS − operating expenses) / revenue × 100. This calculator computes both as you type.
- What is the difference between margin and markup?
- Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. The same $4 profit on a $6 cost is a 40% margin but a 66.7% markup.
Setting a price? The pricing calculator works backward from the margin you want.