# 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

` ````
Profit Margin (%) = (Net Income / Revenue) * 100
```

### How to calculate Profit Margin

- 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

- 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

` ````
Gross Margin (%) = ((Revenue - Cost of Goods Sold) / Revenue) * 100
```

### How to calculate Gross Margin

- Calculate the company's net sales revenue:
- Net Sales Revenue is the total revenue generated from sales, excluding any discounts, returns, or allowances.

- 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.

- 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.

More Articles

- Struggling to Save? Try These 10 Money-Saving Hacks
- 13 Best Financial and Investment Calculators
- Mastering the Art of Frugal Living: A Comprehensive Guide to Smart Shopping
- A Comprehensive Collection of Investing and Financial Books
- The Ultimate List of Investing Podcasts
- Strategic Investing: Why You Should Look Beyond the Stock Market Celebrities
- The Harsh Truth About Dividend Investing
- Where to Buy Domains: Finding the Best Deals
- The AI Gold Rush: Navigating the Thin Line Between Innovation and Overvaluation in Business
- Sweet Dreams: 7 Smart Sleep Investments for a Restful Night.