Profit Margin Calculator

Calculate Gross Profit Margin, Net Margin, and Profit Markup from cost and revenue.

Processing Architecture: Client-Side (Processed locally in your web browser with zero server uploads)

How to Use Profit Margin Calculator

  1. Step 1: Item Cost

    Enter cost of goods sold (COGS) to produce or buy the product.

  2. Step 2: Selling Price

    Enter your customer retail selling price.

  3. Step 3: View Margins

    See Gross Profit dollar amount, Gross Margin %, and Markup %.

Key Features & Capabilities

  • Gross Margin % = ((Price - Cost) / Price) * 100
  • Markup % = ((Price - Cost) / Cost) * 100
  • Instant solve for either Price, Cost, or Target Margin

Frequently Asked Questions

Why is markup always higher than gross margin for a profitable product?

Markup is divided by cost, which is smaller than revenue whenever there is a profit. Dividing the same profit dollar amount by a smaller denominator produces a higher percentage.

Can gross margin ever exceed 100%?

In standard accounting with positive direct costs, gross margin cannot exceed 100% because profit cannot be greater than total revenue.

What is the difference between gross margin and net margin?

Gross margin considers only revenue and the direct cost of goods sold. Net margin accounts for operating expenses, interest, overhead, and taxes.

How do I calculate price from cost and desired margin?

Use the formula: `Price = Cost / (1 - Desired Margin)`, where margin is expressed as a decimal.

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  • Break-Even Point Calculator — Calculate the exact number of units and sales revenue needed to cover all fixed and variable costs.
  • Discount Calculator — Calculate final shopping sale prices, total dollars saved, and double discount stacks.