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Calculate gross margin, net margin, and markup — and understand the difference between them.
Profit Margin Calculator
Margin vs Markup
Gross margin = (Revenue − COGS) ÷ Revenue
What % of revenue is left after direct production costs.
Net margin = (Revenue − Total Expenses) ÷ Revenue
What % of revenue is actual profit after everything.
Markup = (Price − Cost) ÷ Cost
How much you add on top of cost — a 50% markup is not the same as a 50% margin.
A common pricing mistake: a 100% markup (doubling cost) only gives a 50% margin, not 100%. These two metrics are frequently confused — make sure you're using the right one for pricing decisions.