Gross Margin Calculator
Gross Margin Calculator works out Gross profit and Gross margin from Revenue or selling price, Cost of goods sold and Units sold. The default figures on this page give gross margin of 40 %; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
3 steps
- Gross profit = 100 - 60 = 40
- Margin = 40 / 100 = 40%
- Markup = 40 / 60 = 66.67%
Its 8 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
4 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the Gross Margin Calculator calculates
Computes gross, operating and net profit margin from revenue and costs, and reports the equivalent markup so the two are never confused.
How to use this Gross Margin Calculator
Enter Revenue or selling price, Cost of goods sold, Units sold and Direct labour. Gross profit updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Gross profit, Gross margin and Equivalent markup.
The method follows Gross margin = (price - cost) / price; markup = (price - cost) / cost, Break-even units = fixed costs / (price - variable cost per unit), Marginal profit = marginal revenue - marginal cost, i.e. the change in total revenue less the change in total cost between two output levels and SEC EDGAR XBRL Guide - GrossProfit = Revenues - CostOfRevenue; OperatingIncomeLoss is gross profit less operating expenses.
What you can compare
Change one input at a time to see how it affects Gross profit, Gross margin and Equivalent markup. The inputs you can vary are Revenue or selling price, Cost of goods sold, Units sold, Direct labour, Materials and equipment and Subcontractors and other direct costs.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
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Frequently asked questions
How do I calculate gross profit margin?
Computes gross, operating and net profit margin from revenue and costs, and reports the equivalent markup so the two are never confused. Open “How this is worked out” beside the result to see each step for your own figures.
How do I calculate a gross profit?
It needs Revenue or selling price, Cost of goods sold, Units sold, Direct labour, Materials and equipment and Subcontractors and other direct costs. Nothing else is required, and the figures stay in your browser.
How do I calculate a 70% profit margin?
The result gives Gross profit, Gross margin, Equivalent markup, Operating profit, Operating margin and Net profit, each labelled with its unit so the figure can be read on its own.
How to calculate gross profit calculator?
The page opens with worked default figures: gross margin of 40 %. Replace them with your own and every figure updates as you type.
How do I calculate a 30% profit margin?
The method comes from Gross margin = (price - cost) / price; markup = (price - cost) / cost, Break-even units = fixed costs / (price - variable cost per unit) and Marginal profit = marginal revenue - marginal cost, i.e. the change in total revenue less the change in total cost between two output levels, listed in full under Sources so the figures can be checked against the original.
What information do I need for the Gross Margin Calculator?
You need Revenue or selling price, Cost of goods sold, Units sold, Direct labour, Materials and equipment and Subcontractors and other direct costs. The page opens with default figures that give gross margin of 40 %, so you can see the scale before entering your own.