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Gross margin measures profit as a percentage of revenue. It shows how much of each dollar of sales is retained after direct costs.
Gross Margin % = ((Revenue − Cost) ÷ Revenue) × 100The absolute profit is the difference between what you sold for and what it cost to produce or acquire.
Profit = Revenue − CostThe Margin Calculator applies industry-standard financial equations used by lenders, accountants, and planners. All intermediate values are computed with floating-point precision and rounded only for display.
Result = f(principal, rate, period, …)Updated: July 2026
An online seller analyzes gross margin on a product sold for $79 with $32 cost of goods.
→ Profit: $47, margin: 59.5%
A software company calculates gross margin on a monthly subscription with minimal delivery cost.
→ Profit: $87, margin: 87.9%
A homebuyer runs the Margin Calculator with two interest rates side by side to compare total interest paid over 30 years before choosing a lender.
A product with 100% markup has only 50% margin. Markup divides by cost; margin divides by revenue. Convert between them before comparing.
Gross margin excludes rent, salaries, and marketing. A 60% gross margin product can still be unprofitable if operating costs exceed 60% of revenue.
Use our free Margin Calculator for fast, accurate results in your browser. No signup or installation required — works on any device.