Margin calculator
Find the share of sales revenue left after direct costs.
Formula
Gross profit = revenue − cost; margin = gross profit / revenue × 100%
Gross profit ≈ (100)-(60) · Gross margin ≈ (40)÷(100)×100
How to use
- Enter sales revenue greater than zero.
- Enter the cost of the goods sold.
- Read gross profit and margin percentage.
Examples
- Revenue 100 and cost 60 give a 40% margin.
- Revenue 250 and cost 200 give a 20% margin.
Frequently asked questions
Is margin the same as markup?
No. Margin divides profit by revenue; markup divides it by cost.
Is this net profit?
No. Operating expenses, interest and tax are not deducted here.
Can the margin be negative?
Yes, when the cost exceeds sales revenue.
Sources
Updated: