# Margin Calculator

Instantly compute margins with our Margin Calculator. Easy-to-use tool for profit and cost calculations. Get accurate results fast!

Result Selling Price (Revenue) \$0 Profit \$0

## Profit Margin Formula

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Profit Margin (%) = (Net Income / Revenue) * 100
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### How to calculate Profit Margin

1. Determine the company's net income:
• Subtract all expenses, taxes, and other costs from the total revenue to find the net income.
• Net Income = Total Revenue - Total Expenses
2. Calculate the profit margin:
• Divide the net income by the revenue and multiply by 100 to express the result as a percentage.
• Put all the above steps into the profit margin formula.

## Gross Margin Formula

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Gross Margin (%) = ((Revenue - Cost of Goods Sold) / Revenue) * 100
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### How to calculate Gross Margin

1. Calculate the company's net sales revenue:
• Net Sales Revenue is the total revenue generated from sales, excluding any discounts, returns, or allowances.
2. Determine the cost of goods sold (COGS):
• Cost of Goods Sold (COGS) includes all direct costs associated with producing goods or providing services, such as materials, labor, and manufacturing overhead.
3. Calculate the gross margin:
• Subtract the cost of goods sold (COGS) from the net sales revenue.
• Put all the above steps into the gross margin formula.
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