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Profit Margin Calculator

Calculate gross/net profit margin and markup percentage. Input cost and revenue.

Your Figures

Results

Profit

£500.00

Profit Margin

33.33%

Markup

50.00%

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Understanding Your Profitability

Profit margin is a crucial indicator of your business's financial health. It shows how much profit you make for every pound of revenue. A healthy margin means you have more money to reinvest in the business, cover expenses, and ultimately, turn a profit. Our Calculator Site tool helps you quickly assess this key metric.

Calculators & Reference Tools

This  calculator determines both profit margin and markup. While related, they are different: margin is profit as a percentage of revenue, while markup is profit as a percentage of cost. Understanding both gives you a complete picture of your pricing strategy and efficiency.

Gross vs. Net Profit Margin

This calculator focuses on Gross Profit Margin (Revenue - Cost of Goods Sold). To find your Net Profit Margin, you would subtract all other business expenses (rent, salaries, marketing) from the gross profit before calculating the percentage. For business tax liabilities, check our corporation tax calculator.

Practical Tips for UK Businesses

For UK businesses, managing VAT is crucial. Always use ex-VAT figures for accurate margin calculations. Our VAT calculator can help you work with VAT-inclusive and exclusive prices. Also, consider all associated costs, like those calculated by the Ebay fees calculator if you sell on online marketplaces.

How to Use This Calculator

Enter your total revenue for a product or period, and the corresponding cost of goods sold (COGS). The calculator will instantly show your gross profit, profit margin, and markup percentage. Use this information on Calculator Site to make smarter pricing and business decisions.

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