How this tool works
Gross profit = revenue − cost. Margin divides profit by revenue; markup divides profit by cost. The tool does not include taxes or overhead unless you include them in cost.
Privacy and editorial review
This tool runs in your browser and does not require an account. GrowthSparx reviews its logic and explanatory content, but you should verify outputs before production use.
Frequently asked questions
Is margin the same as markup?
No. Margin divides profit by revenue, while markup divides profit by cost.
Which costs should I include?
Include costs appropriate to the decision and apply the same definition across comparisons.
Can margin be negative?
Yes. Cost above revenue produces a negative profit margin.