Formula and assumptions
This calculator uses the values entered above only. Results are a planning aid, not accounting, tax, pricing, or investment advice.
Profit Margin Calculator
Calculate profit and profit margin from revenue and cost.
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About Profit Margin Calculator
Profit Margin Calculator computes gross profit, profit margin percentage, and markup percentage from revenue and cost of goods sold.
How to use Profit Margin Calculator
- Enter total sales revenue.
- Enter total cost of goods or services.
- Click Calculate to compute profit metrics.
- Review gross profit, gross margin percentage, and markup percentage.
Examples
Revenue: £100.00, Cost: £65.00 Result: Gross Profit: £35.00, Margin: 35.00%, Markup: 53.85%
FAQ
What is the formula for gross profit margin?
Gross Profit Margin = ((Revenue - Cost) / Revenue) * 100.
Why is profit margin lower than markup percentage?
Profit margin uses revenue as the denominator (a larger base), whereas markup uses cost as the denominator (a smaller base).