← Back to Small Business Calculators
Calculate gross profit, gross margin %, and markup % from revenue and cost.
Profit margin measures how much of your revenue remains as profit after covering costs. It shows how efficiently you turn sales into profit.
Profit = Revenue − Cost
Gross Margin % = Profit ÷ Revenue × 100
Markup % = Profit ÷ Cost × 100
Margin is based on revenue. Markup is based on cost. A 50% markup does not equal a 50% margin.