Margin Calculator
Enter your revenue and cost to get the gross margin percentage, the profit in cash, and the equivalent markup.
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Enter revenue and cost to see margin, profit and markup.
Worked example
With these example inputs:
- Revenue$1,000
- Cost$600
Gross margin: 40.0%
- Profit$400.00
- Markup66.67%
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. The same profit gives a smaller margin than markup.
How is gross margin calculated?
Gross margin is revenue minus cost, divided by revenue, shown as a percentage. It tells you how much of each sale is left after the cost of the goods.
What is a good profit margin?
It varies widely by industry, so compare against similar businesses rather than a single benchmark.
How do I increase my margin?
Raise prices, lower the cost of goods, or shift your sales mix toward higher-margin products.
What is the difference between gross and net margin?
Gross margin covers only the cost of goods sold, while net margin also subtracts all other expenses.