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Profit Margin Calculator

Calculate your profit margin with the right formula. The profit margin calculator supports three modes: gross margin (revenue minus COGS), net margin (revenue minus all costs), and markup (profit as a percentage of cost). Pick the mode that matches your business reporting.

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How to Use the Profit Margin Calculator

  1. Select the mode: Gross Margin, Net Margin, or Markup.
  2. Enter the revenue (selling price).
  3. Enter the cost or COGS.
  4. Click Calculate to see the margin percentage and profit amount.

Formula Used

Gross Margin = (Revenue − COGS) / Revenue × 100
Net Margin = (Revenue − Total Costs) / Revenue × 100
Markup = (Price − Cost) / Cost × 100

Example: $200 revenue with $140 cost gives a 30% margin or a ~42.9% markup.

Frequently asked questions

Everything you need to know about this calculator.

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