Gross margin
The share of revenue left after direct product costs.
Gross margin compares gross profit with revenue. A 60% gross margin means 60 cents remains from each dollar of revenue before rent, wages and other operating expenses.
Free profit margin calculator
Calculate gross margin, markup and net profit.
Enter revenue, cost of goods and operating expenses to see the measures clearly separated—without treating markup as margin.
Use the same currency for every money input. Results are planning estimates, not financial advice.
Markup
The increase from cost to selling value.
Markup compares gross profit with cost of goods, not revenue. A 150% markup and a 60% gross margin can describe the same price and cost—so the terms are not interchangeable.
Net profit
What remains after operating expenses.
Net profit subtracts the entered operating expenses from gross profit. It may still exclude tax, finance costs, depreciation or owner pay depending on what you include.