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How to Calculate Profit Margin (Free Calculator)
Accounting

How to Calculate Profit Margin (Free Calculator)

By Quotation Expert Team··1 min read
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Understand gross margin, markup, and net margin with worked examples — and a free profit margin calculator.

Knowing your margins is the difference between a business that grows and one that quietly loses money. Here is how to calculate margin and markup, and how they differ — with a free calculator to do it for you.

> Try it now: Use the free [Profit Margin Calculator](/profit-margin-calculator) — no signup, no watermark.

Key things to know

  • Gross profit = selling price − cost of goods.

  • Gross margin % = gross profit ÷ selling price × 100.
  • Markup % = gross profit ÷ cost × 100 (always higher than margin).
  • Net margin accounts for all overheads, not just cost of goods.
  • Price for the margin you need, not just to beat a competitor.

    • Do it automatically in Quotation Expert

    The free tool is great for one-offs. If you do this regularly, Quotation Expert keeps your customers, products, and history in one place and generates documents in seconds. [Create a free account](/sign-up) or explore [all features](/features).

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