[ Free calculator ]
Profit margin calculator
Gross profit is revenue minus COGS. Net profit subtracts operating expenses. Markup is gross profit divided by cost, which is not the same as margin.
Teams mix margin and markup and then wonder why a “50%” offer is unprofitable. Margin divides by selling price. Markup divides by cost.
Use this when you have a P&L line, not when you need search demand. Estimated revenue on TrendMetric is catalog research, not your margin.
Product documentation: Profit Margin Calculator feature.
[ F.A.Q ]
Questions
Why is markup higher than margin?+
The same dollar of profit is a larger share of a smaller cost base than of revenue. A $50 profit on $100 cost is 50% markup and 33% margin if you sell at $150.
What counts as operating expenses?+
Rent, salaries, tools, and other costs that are not COGS. Leave it blank if you only want gross margin.
Can net margin exceed gross margin?+
Not if operating expenses are zero or positive. If net is higher, check that COGS or opex was entered as a negative by mistake.
Does this store my numbers?+
No. The calculator runs in your browser. We do not save the inputs.
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