PRICING, SALES, AND PAY SCENARIOS
Calculate gross profit margin from revenue and the direct cost you enter.
Your result
Enter your values and select Calculate. Your result stays on this device.
Gross profit margin = (revenue − direct cost) ÷ revenue × 100.
Uses only the two amounts you enter. It does not classify expenses, include taxes, or create a financial statement.
Use this profit margin calculator to turn a revenue and direct-cost scenario into gross profit and gross margin. It is useful for a fast pricing check, but it does not decide which expenses belong in your accounting records.
Use case
Calculate gross profit margin from revenue and the direct cost you enter. The stated formula, assumptions, and result limits remain visible so the calculation can be checked in context.
Use a clear profit margin calculator scenario with values you can verify before relying on the result.
Build a reliable scenario
Profit Margin Calculator helps you check a specific business & work question with figures that apply to you. Calculate gross profit margin from revenue and the direct cost you enter. Calculate gross profit margin from revenue and the direct cost you enter. The stated formula, assumptions, and result limits remain visible so the calculation can be checked in context. Use a clear profit margin calculator scenario with values you can verify before relying on the result. The page keeps the method and limits visible so the result can be understood, compared, and checked instead of treated as an unexplained answer.
Prepare Revenue or selling price and Direct cost. Enter revenue or the selling price for the scenario. Enter the direct cost you want to compare with that revenue. Read gross profit and the percentage margin together. Use your accounting method and current records before making a pricing, tax, or reporting decision. Keep units, dates, currency, and time periods consistent.
The stated method is: Gross profit margin = (revenue − direct cost) ÷ revenue × 100. Change one assumption at a time to see which input drives the result, then compare scenarios on the same basis.
Uses only the two amounts you enter. It does not classify expenses, include taxes, or create a financial statement. Check the input and rounding, then calculate again.
Method and update
Last reviewed: 2026-08-10. This tool performs the stated formula locally in your browser using the values you enter.
Subtract direct cost from revenue, then divide that gross profit by revenue and multiply by 100.
Margin is measured against revenue, while markup is measured against cost. The percentages are not interchangeable.
No. Include only the cost figure you choose. Payroll, rent, taxes, shipping, and overhead require your own accounting treatment.
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