Gross Margin Calculator

Gross Margin Calculator — Calculate Profit Margin & Markup

Calculate gross margin, profit margin, and markup percentage. Determine profitability based on revenue, cost of goods sold, and pricing strategy.

Step 1: Revenue & Costs

Revenue (Sales)

$50,000

Cost of Goods Sold (COGS)

$25,000

Business Type

Understanding Gross Margin

Gross Margin = (Revenue – COGS) / Revenue × 100%. It shows the percentage of revenue that exceeds the cost of goods sold, indicating production efficiency.

Step 2: Calculation Settings

Desired Markup Percentage

100%

Currency

Show industry comparison table

Show profit breakdown visualization

Markup vs Margin

Markup is the percentage added to cost to determine selling price. Margin is the percentage of revenue that is profit. A 50% markup equals a 33% margin.

Gross Margin Results

Summary

Industry Comparison

Breakdown

Gross Margin Percentage

50.0%

Based on $50,000 revenue and $25,000 COGS

Gross Profit

$25,000

Markup Percentage

100.0%

Profit Margin

50.0%

Recommended Price

$50,000

Industry Gross Margin Comparison

Industry	Average Gross Margin	Your Margin	Difference

Profit Breakdown

Gross Margin Formula

Gross Margin = (Revenue – COGS) ÷ Revenue × 100%

To calculate gross margin: Subtract Cost of Goods Sold from Revenue, divide by Revenue, then multiply by 100 to get percentage.

Need Professional Financial Analysis?

Connect with our financial experts for detailed margin analysis, pricing strategy optimization, and personalized recommendations for your business profitability.

Get Professional Analysis