The calculation, explained.
Gross profit subtracts cost of goods from revenue. Net profit also subtracts entered fees and other costs. Margins divide by revenue; markup divides gross profit by cost of goods. Zero denominators are explicitly undefined.
Review the example assumptions and results
- Revenue
- 1000 $
- Cost of goods
- 400 $
- Fees
- 100 $
- Other business costs
- 200 $
- Gross profit
- 600 $
- Gross margin
- 60 %
- Net profit
- 300 $
- Net margin
- 30 %
- Gross markup
- 150 %
How this tool works
Adjust the labeled inputs to see a new calculation. Units and assumptions are shown beside each field. Printed and copied results use the same calculation.
Example content is illustrative. Free results do not require signup.
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