Gross, net and operating margin — plus markup from cost.
Margin and markup are two of the most commonly confused numbers in business, even though they come from the same three figures: revenue, cost, and profit. This tool calculates both gross and net margin from your revenue and costs, and separately handles markup calculations from cost price to selling price — so you can use whichever framing matches how you think about your pricing.
Understanding your margins clearly is one of the fastest ways to spot whether a product line, service, or the business overall is actually profitable once all costs are accounted for.
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price. The same €10 profit on a €50 item is a 20% margin but a 25% markup — they're calculated from different bases.
What counts as "cost of goods sold"?
Generally the direct costs of producing what you sold — materials, direct labor, and manufacturing overhead — but not broader operating expenses like rent or marketing, which are handled separately as operating expenses.
What's a healthy profit margin?
This varies enormously by industry — software companies often see 70-80% gross margins, while retailers might see 20-50%, and restaurants often run on single-digit net margins. Compare against your specific industry rather than a universal benchmark.