QuickCalc

Margin Calculator

Gross margin from revenue and cost.

Reviewed by The QuickCalc Editorial Team · Last updated · About our methodology

Enter your details

Result

Margin
40.00%
Profit
R60,00

Inputs & results at a glance

Updates live as you change the form above.

ItemTypeValue
RevenueInputR150,00
CostInputR90,00
ProfitResultR60,00
MarginResult40.00%

About this calculator

A margin calculator returns the gross profit and gross margin percentage from a revenue and cost figure. Enter what you sold something for (revenue) and what it cost you to earn that revenue (cost of goods sold), and the calculator gives you the profit in Rand and the margin as a percentage of revenue.

The formula is Margin % = (Revenue − Cost) ÷ Revenue × 100. Because the denominator is revenue rather than cost, margin is always less than the equivalent markup — a 50% markup produces a 33.3% margin, and a 100% markup produces a 50% margin.

Margin is the single most important product-level KPI in retail and services. Track it per SKU, per client and per month to spot silent erosion — discounting, rising input costs and product mix shifts all show up first in margin trends. In South Africa, retail net margins are frequently in the single digits, while service and software businesses regularly clear 20–40%. Benchmark only against businesses of similar size and sector.

How to use it

  1. 1Enter revenue. The sale price (or total revenue for a period).
  2. 2Enter cost. The cost of goods sold, or total costs for the period.
  3. 3Read profit. The absolute Rand profit.
  4. 4Read margin. The margin as a percentage of revenue.

How it works

The calculator subtracts cost from revenue to get profit, then divides profit by revenue to get the margin as a percentage. If you enter direct cost of goods sold you get gross margin; if you enter total costs including overheads you get net margin.

Margin is the single most important product-level KPI. Track it per product, per client and per month — silent erosion from discounting or rising input costs shows up in the margin trend before it shows up anywhere else.

Formula

Margin % = (Revenue − Cost) ÷ Revenue × 100

Revenue = sale price or total revenue; Cost = COGS for gross margin, or total costs for net margin.

Worked examples

Revenue R150, cost R90

Profit R60. Margin 40%.

Revenue R250,000, cost R215,000 (monthly business)

Profit R35,000. Net margin 14%.

Frequently asked questions

What is a good margin?

It varies wildly by industry. South African retailers often run 3–8% net margins; software and consulting frequently clear 25%+.

Is this gross or net margin?

Whichever cost you enter. Enter COGS for gross margin; enter total expenses for net margin.

Why is my margin dropping?

Usually input costs rising, discount depth increasing, or overheads growing faster than revenue.

What's the margin formula?

Margin % = (Revenue − Cost) ÷ Revenue × 100.

Should I benchmark against competitors?

Yes — but only against businesses in the same sector and roughly the same size. Averages across sectors are meaningless.

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