Gross Margin Calculator
Calculate gross profit and gross margin from revenue and cost of goods sold (COGS), or find the selling price required for a target gross margin.
- Free to use
- Runs in your browser
- Level B · Industry formula
- Last reviewed 2026-08-16
Formulas
Gross Margin vs. Markup
Gross margin compares gross profit with revenue. Markup compares gross profit with cost. If an item costs 60 and sells for 100, gross profit is 40, gross margin is 40%, and markup is about 66.67%.
Understanding the Result
Choose a currency only for display; revenue, COGS, and cost must all be entered in the same currency because this calculator does not perform exchange-rate conversion.
Gross margin measures how much of revenue remains after cost of goods sold. This calculator does not label a margin as “good” or “bad” because useful benchmarks depend on industry, product mix, accounting practices, and business model.
Sources & Methodology
The U.S. Securities and Exchange Commission explains that cost of sales is subtracted from net revenues to arrive at gross profit (also called gross margin in some contexts). The IRS likewise illustrates gross profit as net receipts minus cost of goods sold.
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Calculator guide
About the Gross Margin Calculator
Gross margin compares gross profit with revenue and is commonly used to understand how much revenue remains after cost of goods sold.
What to keep in mind
- Gross margin is different from markup.
- Operating expenses are not included in gross profit.
- Use consistent accounting definitions for revenue and COGS.
Formula & methodology
Calculate gross margin, gross profit, and markup from revenue and cost of goods sold.
Review standard: Level B · Industry formula. How calculator reviews work.CalculateMeasure performs the arithmetic locally in your browser. The displayed result depends on the values and units you enter.
Frequently asked questions
What does this calculator calculate?
Gross margin compares gross profit with revenue and is commonly used to understand how much revenue remains after cost of goods sold.
Can I use the result for an important decision?
Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.
Does CalculateMeasure store the values I enter?
This calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.