MARGIN CALCULATOR
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Find out your COGS (cost of goods sold). For example £30.
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Find out your revenue (how much you sell these goods for, for example £50).
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Calculate the gross profit by subtracting the cost from the revenue. £50 - £30 = £20
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Divide gross profit by revenue: £20 / £50 = 0.4.
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Express it as percentages: 0.4 * 100 = 40%.
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This is how you calculate profit margin... or simply use our gross margin calculator!
As you can see, margin is a simple percentage calculation, but, as opposed to markup, it's based on revenue, not on Cost of Goods Sold (COGS).
If you want to calculate mark-up review our