Profit Margin Calculator
Calculate your gross profit and profit margin percentage.
Enter your numbers and select Calculate to see results.
About This Calculator
This calculator computes gross profit and profit margin — the percentage of revenue that remains as profit after subtracting the cost of goods sold (COGS) — a fundamental metric for pricing and business health.
How This Is Calculated
Profit Margin % = (Revenue − COGS) ÷ Revenue × 100
$100,000 revenue with $60,000 COGS yields $40,000 gross profit — a 40% profit margin.
Assumptions
- Uses gross profit margin (revenue minus COGS only); does not subtract operating expenses, taxes, or interest — see net margin for a fuller picture.
Frequently Asked Questions
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Last updated January 15, 2026. Results are estimates for informational purposes only — read our disclaimer.