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Gross Profit Margin
40%

Gross Profit: $20,000

Markup Ratio+66.67%Based on cost basis
Total Cost basis$30,000Overhead + manufacture

Margin settings

$50,000
$30,000

Margin vs Markup

Gross Margin calculates profit relative to the selling price (revenue). It represents the percentage of each dollar of revenue that remains as profit.

Markup calculates profit relative to the cost of goods sold (COGS). It represents how much you mark up the cost of an item to arrive at the selling price.

Formulas:

  • Margin = (Gross Profit / Revenue) × 100
  • Markup = (Gross Profit / Cost) × 100

How Profit Margin Calculator Works

Our high-performance online utility runs entirely client-side, processing your files securely and instantly inside your web browser. For related functions, you can also use our Margin Calculator and Finance utilities.

Enter Revenue

Step-by-step interactive processing designed for simple, fast, and high-fidelity execution.

Add Cost of Goods

Step-by-step interactive processing designed for simple, fast, and high-fidelity execution.

Calculate Margin

Step-by-step interactive processing designed for simple, fast, and high-fidelity execution.

Margin Types Explained

Designed for professional results, privacy, and maximum compatibility across all modern desktop and mobile browsers:

Gross Margin

Full digital precision and optimized performance with zero server-side latency or external data transfers.

Net Margin

Full digital precision and optimized performance with zero server-side latency or external data transfers.

Markup Percentage

Full digital precision and optimized performance with zero server-side latency or external data transfers.

Profit Analysis

Full digital precision and optimized performance with zero server-side latency or external data transfers.

Frequently Asked Questions About Profit Margins

Is this margin calculator free?

Yes. Calculate unlimited profit margins with no registration.

What's the difference between margin and markup?

Margin is profit/revenue percentage. Markup is profit/cost percentage.

Can this calculate gross profit?

Yes. Get gross profit, gross margin %, and markup % from revenue and COGS.

Do you store revenue data here?

No. All calculations run locally with complete privacy.