Runs entirely in your browser - no upload, no sign-up.
A gross margin calculator subtracts cost of goods sold from sales revenue, then divides the gross profit by revenue. Use it to analyze business totals or plan the revenue or maximum COGS needed for a target margin. It also shows markup separately, because markup uses cost as its base instead of revenue.
Analyze revenue and COGS, plan required revenue, or calculate maximum COGS.
Use revenue and direct costs from the same period, or enter one amount with a target gross margin.
Read gross profit, gross margin, markup and the share of revenue used by COGS.
Review the revenue minus COGS calculation, then copy the result for a worksheet or note.
Use totals from the same accounting period, or use one product's selling price and direct cost. The currency selector changes the symbol only, so the arithmetic works for any currency. Calculations run locally in your browser and your figures are not uploaded.
Gross margin is not net profit. Rent, general payroll, marketing, interest and tax usually sit below gross profit. Cost classification varies by business, so confirm important reporting decisions with a qualified accountant.
Yes. The calculator is free, has no sign-up and does not limit the number of calculations. Use it for a single sale, a product line or accounting-period totals, as long as revenue and COGS cover the same scope.
No. The calculation runs in your browser, and the values you enter are not uploaded or stored by the tool. You can clear the fields when you finish. Standard website analytics may still record ordinary page-visit data, not the calculator inputs.
Gross profit equals revenue minus cost of goods sold. Gross margin percentage equals gross profit divided by revenue, multiplied by 100. For example, 100,000 in revenue and 60,000 in COGS gives 40,000 gross profit and a 40% gross margin.
Gross margin divides gross profit by revenue, while markup divides the same gross profit by COGS. With 100 in revenue and 60 in COGS, gross profit is 40, gross margin is 40%, and markup is 66.67%. The bases are different.
Divide COGS by one minus the target margin as a decimal. If COGS is 60 and the target margin is 40%, required revenue is 60 divided by 0.60, or 100. A target of 100% is undefined when costs are above zero.
Gross margin is undefined at zero revenue, so the calculator asks for a positive revenue amount. Zero COGS produces a 100% gross margin, but markup is undefined because it would divide by zero. COGS above revenue is valid and produces a negative gross margin.
Usually no. Gross margin subtracts cost of goods sold, which covers direct costs tied to what was sold. Operating expenses, interest and tax are used later to calculate operating or net profit. Ask an accountant how your business should classify borderline costs.
