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Margin Calculator

Instantly compute margins with our Margin Calculator. Easy-to-use tool for profit and cost calculations. Get accurate results fast!




Result Selling Price (Revenue) $0 Profit $0

Profit Margin Formula

            
                Profit Margin (%) = (Net Income / Revenue) * 100

How to calculate Profit Margin

  1. Determine the company's net income:
    • Subtract all expenses, taxes, and other costs from the total revenue to find the net income.
    • Net Income = Total Revenue - Total Expenses
  2. Calculate the profit margin:
    • Divide the net income by the revenue and multiply by 100 to express the result as a percentage.
    • Put all the above steps into the profit margin formula.

Gross Margin Formula

            
                Gross Margin (%) = ((Revenue - Cost of Goods Sold) / Revenue) * 100

How to calculate Gross Margin

  1. Calculate the company's net sales revenue:
    • Net Sales Revenue is the total revenue generated from sales, excluding any discounts, returns, or allowances.
  2. Determine the cost of goods sold (COGS):
    • Cost of Goods Sold (COGS) includes all direct costs associated with producing goods or providing services, such as materials, labor, and manufacturing overhead.
  3. Calculate the gross margin:
    • Subtract the cost of goods sold (COGS) from the net sales revenue.
    • Put all the above steps into the gross margin formula.
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