Gross Margin Calculator – Profit Margin %
Calculate gross margin, gross profit, and markup percentage for any product or service.
About This Calculator
Calculate gross margin, gross profit, and markup percentage for any product or service. Use the calculator above for instant results.
Worked Examples
- Gross profit: $40 | Margin: 40% | Markup: 66.7%
Answer: 40% margin
- Gross profit: $20 | Margin: 40%
Answer: 40% margin
- Gross profit: $79 | Margin: 79.8%
Answer: 79.8% margin
Who Uses This Calculator?
Track product profitability.
Monitor gross margin trends.
Price products for target margin.
Assess business financial health.
Common Mistakes to Avoid
❌ Margin vs markup confusion
Margin = profit/revenue. Markup = profit/cost. A 40% margin is NOT a 40% markup — markup would be 66.7%.
❌ Ignoring all costs
Gross margin only covers COGS. Operating expenses, overhead, and taxes are not included.
Frequently Asked Questions
Good gross margin?
SaaS: 70-80%+. Retail: 30-50%. Manufacturing: 25-40%. Restaurants: 65-70%. Varies heavily by industry.
Gross vs net margin?
Gross margin: revenue minus COGS only. Net margin: revenue minus ALL expenses including overhead, taxes, interest.
Gross margin vs markup?
Margin: profit as % of revenue. Markup: profit as % of cost. Use margin for financial reporting; markup for pricing decisions.