Profit Margin Calculator
Separate margin from markup and see how much of each revenue dollar remains as gross profit.
Verify this calculatorVerified
See what the result uses—and what it cannot know.
Sumvoro calculates deterministically from the visible inputs. It does not invent lender terms, local rules, market values, medical facts, or professional judgments.
- 1 · InputsCheck every entered value against the latest statement, quote, measurement, or official source.
- 2 · Formula
Profit = revenue − cost. Margin = profit ÷ revenue. Markup = profit ÷ cost. - 3 · SensitivityUse Insights to run a lower and higher case. If the conclusion changes easily, collect better information or leave more margin.
- 4 · ScopeThis tool is maintained and covered by automated calculation tests. Provider timing, rounding, and omitted facts can still change a real-world result.
- Formula release
- 2026.10-r4
- Release date
- October 10, 2026
- Review status
- Verified
- Source review
- September 12, 2026
Profit Margin calculator
Margin divides profit by selling price; markup divides profit by cost.
- Use landed variable cost.
- Keep margin and markup separate.
- Test discounts.
Optional readingLearn how this calculator works
How the profit margin calculator works
Calculate gross profit, profit margin, and markup from revenue and direct cost.
Profit = revenue − cost. Margin = profit ÷ revenue. Markup = profit ÷ cost.
Read our calculation methodology and limitations.
Example
Revenue of $10,000 with $6,500 in direct cost produces $3,500 gross profit and a 35% gross margin.
What affects the result
- Margin uses revenue as its denominator.
- Markup uses cost as its denominator.
- Overhead and taxes are excluded unless included in entered cost.
Frequently asked questions
Are margin and markup the same?
No. They use different denominators, so the percentages differ even when dollar profit is identical.
Is this net profit margin?
Only if the cost field includes every expense. By default it is best treated as a gross-margin calculation.