A brief explainer on how to calculate your profit margin and what it means for your business. Gross margin defined is Gross Profit/Sales Price. All items needed to calculate the gross margin percentage are found on the income statement. Margin calculator helps you find your profit margin or how much you should sell your goods for. It's a must have for any business person! Markup Calculator · Margin and VAT · Sales Tax · Margin with discount. The profit margins for Starbucks would therefore be calculated as:. Operating Profit A slightly more complex metric, operating profit also takes into account all overhead, operating, administrative and sales expenses necessary to run the business on a day-to-day basis. How do I know the unit cost? Logo Return to Top. Net Sales is Gross Sales less returns, discounts, and allowances for damaged or missing goods.