Margin Calculator

How for Determining Profit Margin

Find out your COGS. For example, 30 bucks. Determine your revenue (how much you sell these goods for, say, 50). To calculate gross profit, subtract the cost from the revenue. 50 − 30 = 20. Divide gross profit by revenue. 20 / 50 = 0.4. Express it as a percentage: 0.4 ⋅ 100 = 40%. This is how to calculate profit margin... or just use our net profit calculator! As you can see, the margin is an easy percent calculation that, unlike markup, is based on earnings rather than cost of goods sold (COGS).

Gross Margin Formula

The gross margin percentage is calculated using the following formula:
Gross margin is calculated as 100 times profit divided by revenue.
(when expressed in percentages). The profit equation is:
Profit equals revenue reduced by costs.
So, a different margin formula is:
Margin = 100 x (revenue - costs) / revenue.
Now that you know how to calculate profit margins, here is the revenue formula:
Revenue = 100 x profit / margin.
Finally, to determine how much you will pay for an item, given your margin and revenue (or profit), do the following:
Costs = revenue - margin × revenue / 100.