Finance
Profit Margin Calculator
Calculate gross profit margin from revenue and cost of goods sold.
Formula
Margin equals revenue minus cost, divided by revenue, times 100.
How it works
Margin shows what share of each sales dollar remains after direct costs. It does not include rent, salaries, or tax, which are covered by operating and net margins.
FAQs
What is a healthy margin?
It varies widely by industry — compare with similar businesses.
Margin vs markup — what is the difference?
Margin is profit as a share of price; markup is profit as a share of cost.
Why track it over time?
Falling margin can signal rising costs or price pressure.
Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.
Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.