Finance

Gross Margin Calculator

Find gross profit and gross margin from revenue and COGS.

Parameters Live Compute
Calculated Output
Gross profit ($) 40,000
Gross margin (%) 40
Formula: gross margin = (revenue − COGS) ÷ revenue × 100
Step-by-Step Breakdown
1. Values used:
2. Revenue = 100,000 $
3. Cost of goods sold = 60,000 $
4.
5. Gross profit = Revenue - Cost of goods sold = 100,000 - 60,000 = 40,000$
6. Gross margin = 40%
Did this calculator solve your problem today?
Report issue to loopingon.com
Sponsored

Gross margin shows the profit left after direct production costs.

The math behind it

gross profit = revenue − COGS; gross margin = gross profit ÷ revenue × 100.

Worked Example

$100k revenue, $60k COGS → 40% margin.

Frequently Asked Questions

Margin vs markup?

Margin is on the sale price; markup is on the cost.

Advertisement