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Profit Margin Calculator

Calculate gross, operating, and net profit margin from revenue and costs in your browser. Convert between margin and markup, no signup required.

Calculator mode

Enter revenue and break costs into cost of goods sold, operating expenses, interest, and tax to see gross, operating, and net profit margins side by side.

Total income from sales over the period before any costs are deducted. Also called net sales or top line.

Direct costs tied to producing or buying what you sold: materials, manufacturing, freight in, payment processing.

Running costs that are not tied directly to a sale: salaries, rent, software, marketing, utilities. Often called OPEX or SG&A.

Interest paid on loans or credit lines for the period. Leave at zero if you carry no debt.

Income tax for the period. Leave at zero if you want the pre-tax net margin.

Display formatting only. No currency conversion is applied.

Margin vs markup

Margin and markup describe the same gap between price and cost in two different ways. Margin compares profit to revenue and is what income statements report. Markup compares profit to cost and is what retailers use to price items.

Profit margin

28%

margin = profit / revenue x 100

Equivalent markup

38.89%

markup = profit / cost x 100

Quick reference: a 20% margin equals a 25% markup, a 33.33% margin equals a 50% markup, and a 50% margin equals a 100% markup (keystone pricing).

Margin to markup reference

Use this table to translate a target profit margin into the markup you need to charge on cost. The math is exact and currency independent.

Target marginEquivalent markupRevenue per 1.00 of cost
5%5.26%1.05
10%11.11%1.11
15%17.65%1.18
20%25%1.25
25%33.33%1.33
30%42.86%1.43
40%66.67%1.67
50%100%2.00
60%150%2.50
70%233.33%3.33

For example, charging 1.43 in revenue for every 1.00 of cost hits a 30% profit margin (equivalent to a 42.86% markup on cost).

Margin types

Gross margin

Revenue minus cost of goods sold, divided by revenue. Measures how profitable each sale is before running costs.

(revenue - COGS) / revenue

Operating margin

Gross profit minus operating expenses (salaries, rent, marketing), divided by revenue. The headline number for day-to-day business health.

(gross profit - OPEX) / revenue

Net profit margin

Operating profit minus interest and tax, divided by revenue. The bottom-line take-home margin after every cost in the period.

(operating profit - interest - tax) / revenue

How to use

  1. Pick a mode that matches the question you have: Revenue + cost stack (full income statement walk), Revenue + total cost (quick margin), Cost + target margin (find required revenue), or Revenue + target margin (find maximum total cost).
  2. Enter the inputs the mode needs. In the cost-stack mode you can leave interest or tax at zero to get the pre-tax operating or pre-tax net margin.
  3. Use the quick-percent chips on the margin field to drop in 5, 10, 15, 20, 25, 30, 40, or 50% in one click.
  4. Pick a currency for display formatting (no FX conversion is applied).
  5. Read the headline answer at the top of the Result panel (net margin, profit margin, required revenue, or maximum total cost depending on the mode), the per-row breakdown of revenue, costs, profit, margin, and markup, and the Margin vs Markup panel that always shows both percents for the current scenario.
  6. Use any Copy button to grab a single value, or Copy summary to share the full breakdown. Scan the Margin to markup reference table to translate any target margin into the markup you need to charge on cost.

About this tool

Profit Margin Calculator answers the three most-searched margin questions in one tool: what gross margin does my product line earn, what operating margin does my business run at after the fixed costs of running it, and what net margin do I take home once interest and tax are paid. Pick a mode to match the data you have. Revenue + cost stack walks down a real income statement: enter revenue, cost of goods sold, operating expenses, interest, and tax to see gross profit, operating profit, and net profit alongside the matching gross, operating, and net margin percentages, plus the effective markup on total cost. Revenue + total cost collapses the cost columns into one figure for the most common quick-math case. Cost + target margin works backwards from a desired margin to the revenue you need to charge to hit it, and Revenue + target margin gives you the maximum total cost you can spend on a project and still finish at that margin. Margin is computed as profit divided by revenue, exactly the way income statements report it; markup is computed as profit divided by cost, exactly the way retailers price items. The two are linked by the closed-form pair margin = markup / (1 + markup) and markup = margin / (1 - margin), and a Margin vs Markup panel converts between them for the current scenario so the page directly answers the most common follow-up search, 'is a 30% margin the same as a 30% markup' (it is not). A reference table translates every common margin tier (5, 10, 15, 20, 25, 30, 40, 50, 60, 70 percent) into the equivalent markup and the revenue you need per unit of cost, and a short explainer block defines gross, operating, and net margin with the formula written underneath so the difference is obvious. Currency selection covers USD, EUR, GBP, CAD, AUD, JPY, INR, and TRY for display formatting through Intl.NumberFormat with no FX conversion. Useful for ecommerce sellers checking margin against fees, Shopify and Amazon merchants pricing new SKUs, freelancers and agencies building a target-margin quote, founders modeling unit economics, finance students working through the gross/operating/net margin tree, and bookkeepers double-checking a P&L row by row. Everything runs locally on your device, so the revenue and cost figures you type stay in your browser.

Free to use. Works in your browser. No signup, no login.

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