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Margin Calculator

Calculate gross profit margin, markup percentage, and total profit from cost of goods sold (COGS) and sale price.

Inputs

$
$

Results

Gross Profit$0.00
Gross Margin0.00%
Markup0.00%

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How to use the Gross Profit Margin Calculator

Enter your Cost of Goods Sold (COGS) and your Revenue (Sale Price). The tool calculates your Gross Profit ($), Gross Margin (%), and Markup (%). Understanding the mathematical distinction between Gross Margin and Markup is crucial for pricing strategies. Combine with our ROI Calculator and Freelance Hourly Rate Calculator for comprehensive financial planning.

?Frequently Asked Questions

What is the Margin Calculator?

The Margin Calculator computes gross profit dollars, gross profit margin percentage, and markup percentage from your Cost of Goods Sold (COGS) and Selling Price (Revenue). It delivers instant pricing analysis for retail products, freelance services, and business inventory.

Who is the Margin Calculator for?

Ideal for e-commerce store owners, retail managers, pricing strategists, freelancers, and business analysts setting product prices and evaluating profitability.

How to Use the Margin Calculator

  1. Input your unit Cost of Goods Sold (COGS) in dollars.
  2. Enter your total Revenue or intended Selling Price.
  3. View instant results for Gross Profit ($), Gross Margin (%), and Markup (%).
  4. Copy the calculation breakdown for your financial records.

Worked Calculation Example

If a product costs $40.00 to produce or buy (COGS) and sells for $60.00 (Revenue), your Gross Profit is $20.00. Your Gross Margin is 33.33% ($20 / $60), and your Markup is 50.00% ($20 / $40).

Frequently Asked Questions

Margin Calculator

Our free online Margin Calculator enables business owners to calculate gross profit margin, markup percentage, and total profit dollars instantly in their browser.

What is the difference between Margin and Markup?

Gross Margin measures profit relative to total selling price (Revenue), whereas Markup measures profit relative to production cost (COGS). Margin can never exceed 100%, while Markup can exceed 100%.

How is Gross Margin calculated?

Gross Margin (%) = ((Revenue - COGS) / Revenue) * 100.

What is a healthy gross profit margin?

Healthy margins vary by sector: retail products typically target 50% gross margin, while software and SaaS companies aim for 70% to 80% gross margins.

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