Gross Margin Calculator
Calculate gross margin and markup percentage.
Interactive calculator
$
$
Result
Gross profit
$40.00
Gross margin
40%
Markup
66.67%
What it is
Gross margin is your most basic profitability metric. It tells you how much of each sale dollar you keep after paying for the thing you sold.
The formula
Gross margin = (Revenue − COGS) ÷ Revenue × 100 Markup = (Revenue − COGS) ÷ COGS × 100
Why it matters
Understanding gross margin calculator helps you make a better-informed decision before you commit money or time.
Worked examples
Try the example
Use the defaults above as a starting point — then adjust the inputs to match your situation.
Common pitfalls
- Double-check the units on every input — most errors come from mixing units.
- Round at the end, not in the middle of the formula.
Frequently asked questions
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