Business Calculators
Profit Margin Calculator
Calculate gross, operating and net margin from revenue and costs, and see the markup implied by your pricing.
Net margin
11.3%
- Gross margin
- 40%
- Operating margin
- 15%
- Net profit
- $54,000
- Markup on cost
- 66.7%
How this calculator works
Margin = profit ÷ revenue; markup = profit ÷ cost
- gross profit
- revenue less the direct cost of goods sold
- net profit
- what remains after every cost including interest and tax
Example calculation
Illustrative example — not advice
Worked example — the profit margin calculator as it loads, using the default figures below.
- 01Enter revenue: $480,000.
- 02Enter cost of goods sold: $288,000.
- 03Enter operating expenses: $120,000.
- 04Enter interest and tax: $18,000.
- 05Read the net margin from the results panel: 11.3%.
Net margin: 11.3%. Gross margin: 40%. Operating margin: 15%. Net profit: $54,000. Markup on cost: 66.7%.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- Margin and markup are not the same number — a 50% markup is a 33% margin.
- Compare margins against your own history before comparing to industry averages.
Related calculators
- Break-Even CalculatorUnits and revenue needed to break even.
- Markup CalculatorSelling price from cost and target markup.
- ROI CalculatorTotal and annualised return on any investment.
- Business Loan CalculatorRepayments and total cost on a business term loan.
- Business Loan Payment CalculatorBusiness borrowing repayments and total cost.
- Employee Cost CalculatorThe fully loaded annual cost of a hire.
Terms used here
Frequently asked questions
Which margin matters most?
Gross margin shows whether the product works; net margin shows whether the business does.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01