How it works
How to calculate it
The calculator applies the values you enter to this formula:
Gross profit = revenue − cost; margin = gross profit ÷ revenue × 100.
How to use this calculator
- Choose a consistent revenue period.
- Enter costs from that same period.
- Review both dollar profit and margin percentage.
Worked example
$10,000 revenue minus $6,500 cost produces $3,500 gross profit and a 35% margin.
Important assumptions
- Revenue must be greater than zero.
- Use costs from the same period as revenue.
- This is not a substitute for accounting, tax, or financial advice.
Common mistakes to avoid
- Mixing gross and net cost definitions.
- Leaving refunds or discounts outside revenue.
- Comparing margins calculated with different cost scopes.
Method reviewed June 10, 2026. Prices and rates are user-provided defaults and should be replaced with local values.