Gross Margin Calculator
Calculate gross margin, profit, and bi-directional pricing analysis
Input
$
$
Gross Margin
33.33%
Profit Amount
$50
Selling Price
$150
Formula
Gross Margin = (Selling Price − Cost Price) ÷ Selling Price × 100%
FAQ
What is gross margin?
Gross margin is the percentage of revenue that exceeds the cost of goods sold. It measures how efficiently a business turns materials and labor into profit.
What's the difference between margin and markup?
Margin is calculated as a percentage of the selling price, while markup is calculated as a percentage of the cost. For example, 50% margin = 100% markup.
What is a healthy gross margin?
Healthy gross margins vary by industry. Software companies often have 70-80% margins, while retailers typically have 20-50% margins.