Profit Margin Calculator

A profit margin calculator can help you determine the exact profit margin, calculate costs of products and services, evaluate if a project is profitable, measure revenue, and other values.

How to calculate profit margin

1. Find out your COGS (cost of goods sold). For example $50.
2. Find out your revenue (how much you sell these goods for). For example $80.
3. Calculate the gross profit by subtracting the cost from the revenue. $80 – $50 = $30.
4. Divide gross profit by revenue and express it as percentages: $30 / $80 = 0.375 * 100 = 37.5%.

But it’s easier to use a calculator – check

Gross margin formula

Gross margin formula: gross margin = 100 * profit / revenue.

Profit formula: profit = revenue – costs.

Margin formula is: margin = 100 * (revenue – costs) / revenue.

Formula for revenue: revenue = 100 * profit / margin.

Cost formula: costs = revenue – margin * revenue / 100.