Gross Margin Calculator
The Gross Margin Calculator computes the gross margin ratio from revenue and cost of goods sold (COGS). See your gross profit, gross margin percentage, and markup ratio instantly — essential for pricing decisions, profitability analysis, and financial reporting.
🕐 Recent Calculations
What is Gross Margin?
Gross margin is the ratio of gross profit to revenue, expressed as a percentage. Gross profit equals revenue minus cost of goods sold (COGS). A gross margin of 40% means that for every $1 in sales, the company retains $0.40 after covering direct production costs.
Gross margin varies significantly by industry: software companies often exceed 80%, retail averages 25-50%, and grocery stores typically see 20-30%. Tracking gross margin helps businesses set prices, control costs, and benchmark against competitors.
Formler & Ekvationer som används
Denna Gross Margin Calculator använder 5 kärnekvationer:
1 Gross Margin Percentage ▼
Revenue of $500,000 with COGS of $300,000: Gross Margin = ($200,000 / $500,000) × 100 = 40%.
2 Gross Profit ▼
Revenue $500,000 - COGS $300,000 = Gross Profit $200,000.
3 Markup Percentage ▼
With $200K profit on $300K COGS: Markup = ($200K / $300K) × 100 = 66.7%. Note: markup and margin are different calculations.
Hur man använder denna räknare
För att använda denna Förhållande Räknare, följ 3 steg:
Ange Värden
Skriv in de kända förhållandevärdena i inmatningsfälten. Lämna ett fält tomt — det är det okända värdet som Förhållande Räknaren löser.
Välj Läge
Välj förhållandeläge — Lös, Förenkla eller Skala. Varje läge tillämpar olika ekvationer på dina inmatningsvärden.
Få Resultat
Klicka på Beräkna. Resultatskärmen visar svaret med ett visuell förhållandestapel, cirkeldiagram och steg-för-steg-lösningsuppdelning.
Exempelproblem & Steg-för-steg-lösningar
Här är 3 exempelproblem med steg-för-steg-lösningar som använder denna Förhållande Räknare:
Inmatning 1 Revenue $250,000 and COGS $150,000
Inmatning 2 Product costs $12 to make, sells for $30
Inmatning 3 Target 35% margin, COGS is $65
Vanliga Frågor
What is the difference between gross margin and net margin? ▼
Gross margin only subtracts COGS from revenue. Net margin subtracts ALL expenses (COGS, operating costs, taxes, interest). Gross margin is always higher than net margin because it excludes overhead costs.
What is a good gross margin percentage? ▼
A 'good' gross margin depends on industry. Software/SaaS: 70-90%. Retail: 25-50%. Manufacturing: 25-40%. Food service: 55-65%. Compare against industry benchmarks rather than an absolute number.
How is gross margin different from markup? ▼
Gross margin divides profit by revenue (selling price). Markup divides profit by cost. A 50% margin equals a 100% markup. A 33.3% margin equals a 50% markup. They describe the same profit from different perspectives.
How do I improve gross margin? ▼
Increase prices, negotiate lower supplier costs, reduce waste in production, switch to higher-margin products, or improve manufacturing efficiency. Even small margin improvements compound across volume.
Can gross margin be negative? ▼
Yes. Negative gross margin means the company sells products for less than they cost to make (COGS exceeds revenue). This is unsustainable long-term but may occur during market entry, liquidation, or loss-leader strategies.