Margin Calculator

Calculate gross margin, net margin or markup from your revenue and cost.

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Margin Formula

Gross Margin = (Revenue − Cost) ÷ Revenue × 100%

Net Margin = (Revenue − Cost − Expenses) ÷ Revenue × 100%

Markup = (Revenue − Cost) ÷ Cost × 100%

Gross Margin Explained

Gross margin shows what percentage of each dollar of revenue is kept after paying the direct cost of goods sold. A $1000 sale with $600 cost keeps $400, a 40% gross margin.

Markup vs Margin

Margin is calculated on revenue; markup is calculated on cost. The same $400 profit on $600 cost is a 40% margin but a 66.7% markup. Confusing the two is one of the most common pricing mistakes.

MarkupEquivalent Margin
25%20%
50%33.3%
100%50%

Frequently Asked Questions

Gross Margin = (Revenue − Cost) ÷ Revenue × 100%. For example, $1000 revenue with $600 cost gives (1000−600)÷1000 = 40% margin.

Margin divides profit by revenue; markup divides profit by cost. A 50% markup equals a 33.3% margin.

Net margin also subtracts operating expenses: (Revenue − Cost − Expenses) ÷ Revenue × 100%.

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