How it works
Profit is Revenue − Cost. Margin is (Profit ÷ Revenue) × 100.
Example
Revenue of 1,000 with cost of 700 gives profit of 300 and a margin of 30%.
Assumptions & limitations
This is gross margin based on the figures you enter. It doesn't separate operating expenses, taxes or overhead unless you include them in cost.
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a % of revenue (selling price). Markup is profit as a % of cost. They give different numbers for the same sale.
Is this net or gross margin?
It's gross margin — profit relative to revenue, based on whatever cost figure you enter.