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  3. /Profit Margin Calculator

Profit Margin Calculator

Free profit margin calculator for gross margin, profit percentage, and profit left after costs.

Calculate gross profit margin from revenue and costs. Enter total sales revenue and direct cost; the result shows profit as a percentage of revenue.

$
Total sales revenue for the period.
$
Direct cost for the same period.
Example
For $1,250 revenue and $800 cost, profit is $450 and margin is 36%.

Frequently Asked Questions

What is profit margin?

Profit margin is profit expressed as a percentage of revenue.

What does a 36% margin mean?

$0.36 of each revenue dollar remains after cost.

Can margin be negative?

Yes. It means cost exceeds revenue.

Is margin the same as markup?

No. Margin divides profit by revenue; markup divides profit by cost.

Gross margin here excludes taxes, overhead, and financing costs.

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