Business margin calculator
Enter revenue and direct costs to estimate gross profit, gross margin and markup. This tool does not calculate tax, net profit, operating expenses, inventory adjustments or accounting results.
Educational estimate only. Confirm revenue recognition, cost classification, inventory treatment and tax calculations with your accountant.
How to use this margin calculator
Enter revenue and direct costs for the same period and basis. The result is an illustrative gross-profit calculation, not a financial statement, tax computation or valuation.
What is the difference between margin and markup?
Gross margin divides gross profit by revenue. Markup divides gross profit by direct cost. They answer different pricing and reporting questions.
What does this calculator exclude?
It excludes operating expenses, tax, inventory adjustments, refunds, revenue-recognition issues and other accounting judgements.