Gross Margin Calculator
Calculate gross profit margin from revenue and cost of goods sold. A key metric for pricing strategy and profitability.
Formula:
Gross Margin = (Revenue - COGS) / Revenue × 100
Gross Margin
40.0%
Markup: 66.7%
Revenue
$100,000
COGS
$60,000
Gross Profit
$40,000
Profit Breakdown
Gross Margin vs Markup
(Revenue - COGS) / Revenue × 100
Margin shows profit as a percentage of the selling price (revenue). It's the portion of each sale that is profit.
Example:
$100 sale - $60 cost = $40 profit
Margin = $40 / $100 = 40%
(Revenue - COGS) / COGS × 100
Markup shows profit as a percentage of the cost. It's how much you add on top of your cost to set the price.
Example:
$100 sale - $60 cost = $40 profit
Markup = $40 / $60 = 66.7%
Quick Conversion Table
Margin
20%
Markup
25%
Margin
33%
Markup
50%
Margin
50%
Markup
100%
Margin
60%
Markup
150%