Calculate gross margin, gross profit, and markup from your revenue and cost of goods sold — and understand the crucial difference between margin and markup.
How it works
- Input your total revenue or the selling price per unit.
- Input the Cost of Goods Sold (COGS).
- The engine outputs the difference between margin and markup automatically.
Frequently asked questions
Margin vs markup — what is the difference?
Margin is profit as a percent of the selling price; markup is profit as a percent of cost. A 50% markup equals only a 33% margin.
What is a good gross margin?
It varies enormously: software 70–90%, retail 20–50%, grocery 5–15%. Compare within your own industry.
Is gross margin the same as net margin?
No — gross margin only deducts direct product costs. Net margin also subtracts operating expenses, interest, and taxes.