Business fundamentals

Turn revenue and costs into the margin that matters.

Separate cost of goods from operating costs, then see gross and net profit without mixing up margin and markup.

Read the profit margin guide

Sale inputs

Enter the period totals

Use the same period for revenue and every cost, whether that is one item, a month, or a year.

Transparent by design

Margin formulas used

Margin measures profit as a share of revenue.

  • Gross profit = revenue minus cost of goods sold.
  • Net profit = gross profit minus operating costs.
  • Net margin = net profit divided by revenue.