Profit margin calculator

Client

Gross margin uses profit divided by revenue; markup compares profit to cost—both update as you type.

Margin inputs

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Margin here is gross profit divided by revenue. Markupis gross profit divided by cost (when cost > 0).

Gross profit: $60.00

Margin on revenue: 40.00%

Markup on cost: 66.67%

Common use cases

  • Convert revenue and cost into gross margin on revenue and markup on cost.
  • Compare pricing scenarios when cost or list price changes.
  • Teach margin versus markup vocabulary with live numbers.

Common mistakes to avoid

  • Using margin and markup interchangeably

    Margin divides profit by revenue; markup divides profit by cost—same profit, different denominators.

  • Ignoring operating expenses

    Gross margin excludes overhead; net profit needs a fuller model.

FAQ

Are margin calculations performed locally?

Yes. Inputs stay in your browser tab.

Is this accounting or tax advice?

No. It is generic arithmetic—confirm definitions with your finance team or accountant.

More tools

Related utilities you can open in another tab—mostly client-side.