Gross Margin Calculator
Determine gross profit, margin percentage, and markup instantly by inputting your cost and selling price.
Margin & Markup Calculator
Provide cost and revenue to compute profitability metrics.
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Gross Profit$50.00Revenue minus Cost
Gross Margin50.0%Profit as % of Revenue
Markup100.0%Profit as % of Cost
Parameters recalculate dynamically as values update.
Revenue Split Visualizer
See what proportion of your revenue is cost versus profit.
Cost of Goods Sold
Gross Profit
Table of Contents
Real-World Margin Presets
Select a preset industry template to load common margin benchmarks.
Margin Formulas & Logic
Understand how gross profit, margin, and markup are calculated.
Knowing the difference between margin and markup is crucial for correctly pricing your products and understanding profitability.
1. Gross Profit
Gross Profit = Revenue - Cost of Goods Sold
Gross Profit = Revenue - Cost of Goods Sold
2. Gross Margin
Gross Margin (%) = (Gross Profit / Revenue) * 100
Margin looks at profit as a percentage of your total sales price.
Gross Margin (%) = (Gross Profit / Revenue) * 100
Margin looks at profit as a percentage of your total sales price.
3. Markup
Markup (%) = (Gross Profit / Cost of Goods Sold) * 100
Markup looks at profit as a percentage of your costs.
Markup (%) = (Gross Profit / Cost of Goods Sold) * 100
Markup looks at profit as a percentage of your costs.
Example: If a product costs $50 and you sell it for $100, your gross profit is $50. The margin is 50% ($50/$100), but the markup is 100% ($50/$50).
Projected Margin Matrix
Review how different markup strategies impact your revenue and gross margin, based on your current cost of $50.
| Target Markup (%) | Cost | Projected Revenue | Projected Profit | Gross Margin |
|---|---|---|---|---|
| 10% | $50.00 | $55.00 | $5.00 | 9.1% |
| 25% | $50.00 | $62.50 | $12.50 | 20.0% |
| 50% | $50.00 | $75.00 | $25.00 | 33.3% |
| 75% | $50.00 | $87.50 | $37.50 | 42.9% |
| 100% | $50.00 | $100.00 | $50.00 | 50.0% |
| 150% | $50.00 | $125.00 | $75.00 | 60.0% |
| 200% | $50.00 | $150.00 | $100.00 | 66.7% |
| 300% | $50.00 | $200.00 | $150.00 | 75.0% |
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