Gross Margin Calculator
Revenue minus COGS over Revenue — business margin
$
$
Gross Profit
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Gross Margin
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Markup
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Profit per $ Revenue
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📚 Learn more — how it works, FAQ & guide Click to expand
Learn more — how it works, FAQ & guide
Click to expand
Free gross margin calculator
Calculate gross margin, profit, and markup. Clear distinction between margin (as % of revenue) and markup (as % of cost).
How to use this tool
- 1
Enter revenue
Total sales or revenue of a product/business.
- 2
Enter COGS
Cost of goods sold — direct costs to produce.
- 3
See margin + markup
Both gross margin and markup calculated (often confused!).
Frequently Asked Questions
Margin vs markup?
Margin = (Revenue - COGS) / Revenue. Markup = (Revenue - COGS) / COGS. They are NOT the same. 50% markup = 33% margin.
Good margins by industry?
Software: 70-90%. Services: 40-60%. E-commerce: 20-40%. Grocery: 2-5%. Manufacturing: 15-30%.
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100% Privacy. This tool runs entirely in your browser. Your data is never uploaded to any server.