Gross margin calculator
See what remains after direct costs and compare the result with your own margin target.
Your inputs
Use one currency and a consistent reporting period.
No sign-up required. Your inputs stay in this browser tab.
Your calculation
Enter your figures and select Calculate.
How the calculation works
Gross margin % = (revenue − cost of goods sold) ÷ revenue × 100
Use the result as a planning aid. Check the source records and the assumptions before making financial decisions.
Separate margin and markup
The tool subtracts cost of goods sold from revenue to calculate gross profit. Gross margin uses revenue as the denominator; markup uses cost.
Interpret the result in context
Gross profit is available to cover operating expenses and other costs. It is not net profit. Compare results using consistent treatment of revenue and cost of goods sold.
Put the numbers to work.
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