Finance

Gross Margin Calculator

Find gross profit and gross margin from revenue and COGS.

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 $

5. Gross profit = Revenue - Cost of goods sold = 100,000 - 60,000 = 40,000$

6. Gross margin = 40%

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The math behind it

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

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

Margin vs markup?

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