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.
| Markup | Equivalent 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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