Gross Margin Calculator
Enter revenue and cost of goods sold to find your gross margin, the share of each sales dollar left after the direct cost of what you sold.
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Enter revenue and cost of goods sold to see gross margin.
Worked example
With these example inputs:
- Revenue$1,000
- Cost of goods sold$600
Gross margin: 40.0%
- Gross profit$400.00
- Markup66.67%
Frequently asked questions
What is gross margin?
Gross margin is revenue minus the cost of goods sold, divided by revenue, as a percentage. It shows profitability before operating expenses like rent and salaries.
How is gross margin different from markup?
Margin measures profit against the selling price, while markup measures it against cost. The same dollar profit gives a lower margin percentage than markup.