Margin Calculator
Profit Margin Calculator works out Gross profit and Gross margin from Solve for, Revenue or selling price and Cost of goods sold. The default figures on this page give gross margin of 40 %; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
3 steps
- Gross profit = 100 - 60 = 40
- Margin = 40 / 100 = 40%
- Markup = 40 / 60 = 66.67%
Its 8 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
4 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the Profit Margin Calculator calculates
Computes gross, operating and net profit margin from revenue and costs, and reports the equivalent markup so the two are never confused.
How to use this Profit Margin Calculator
Enter Solve for, Revenue or selling price, Cost of goods sold and Target margin. Gross profit updates as you type, and “Use a worked example” loads checked figures you can adjust. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Gross profit, Gross margin and Equivalent markup.
The method follows Gross margin = (price - cost) / price; markup = (price - cost) / cost, Break-even units = fixed costs / (price - variable cost per unit), Marginal profit = marginal revenue - marginal cost, i.e. the change in total revenue less the change in total cost between two output levels and SEC EDGAR XBRL Guide - GrossProfit = Revenues - CostOfRevenue; OperatingIncomeLoss is gross profit less operating expenses.
Cost 60, price 100 example
With Revenue or selling price: 100, Cost of goods sold: 60, Solve for: margin, the calculator returns Gross profit: 40, Gross margin: 40, Equivalent markup: 66.6667. This example is checked against an independent source in the test suite.
What you can compare
Change one input at a time to see how it affects Gross profit, Gross margin and Equivalent markup. The inputs you can vary are Solve for, Revenue or selling price, Cost of goods sold, Target margin, Operating expenses and Interest, tax and other costs.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
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Frequently asked questions
How do I calculate the margin?
Computes gross, operating and net profit margin from revenue and costs, and reports the equivalent markup so the two are never confused. Open “How this is worked out” beside the result to see each step for your own figures.
What is a 30% margin on $100?
Computes gross, operating and net profit margin from revenue and costs, and reports the equivalent markup so the two are never confused. On this page it is computed from Solve for, Revenue or selling price and Cost of goods sold and shown as Gross profit, Gross margin and Equivalent markup.
How do I calculate a 70% profit margin?
It needs Solve for, Revenue or selling price, Cost of goods sold, Target margin, Operating expenses and Interest, tax and other costs. Nothing else is required, and the figures stay in your browser.
How do I calculate a 20% profit margin?
The result gives Gross profit, Gross margin, Equivalent markup, Operating profit, Operating margin and Net profit, each labelled with its unit so the figure can be read on its own.
What information do I need for the Profit Margin Calculator?
You need Solve for, Revenue or selling price, Cost of goods sold, Target margin, Operating expenses, Interest, tax and other costs, Units sold and Direct labour. The page opens with default figures that give gross margin of 40 %, so you can see the scale before entering your own.
What does this Profit Margin Calculator show?
It shows Gross profit, Gross margin, Equivalent markup, Operating profit, Operating margin, Net profit, Net margin and Selling price, with the working and any warnings for your entries.