Omni-Directional Profit Margin Calculator
Calculate your Gross & Net Profit. Enter any two values below to instantly calculate the rest, including Operating Expenses.
Profit Margin vs. Markup:
The Profit Margin Calculator computes gross profit, operating margin, and net revenue retention from cost of goods sold. It establishes the exact percentage of sales retained as profit, helping businesses price sustainably and protect operational margins.
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Net Profit Margin
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Net Profit ($)
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Markup
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Multiplier
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How to Use This Calculator
This is an omni-directional calculator. You only need to enter two values, and the system will instantly solve for the remaining fields.
- Find your selling price: Enter your Cost Price and desired Gross Margin.
- Find your margin: Enter your Cost Price and Selling Price.
- Find your true bottom line: Enter your OpEx to see how much of your Gross Profit is actually Net Profit.
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Request Custom ProposalMargin & Markup Conversion Equations
Gross Margin (%) = ((Selling Price - Cost) / Selling Price) * 100 | Markup (%) = ((Selling Price - Cost) / Cost) * 100P- Retail Selling Price
C- Cost of Goods Sold (COGS)
Gross Profit- Revenue minus COGS ($)
Target Price- Cost / (1 - Desired Margin %)
Retail Pricing Worked Case Study
If a manufactured good has a landed cost of $60.00 and you target a 40.0% gross margin, dividing $60.00 by 0.60 (1 - 0.40) establishes a $100.00 retail price. Gross profit is $40.00, and equivalent markup on cost is 66.7% ($40 / $60).