How to use the Gross Margin Calculator
Enter the sales revenue and cost of goods sold and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
The formula
Gross margin = (revenue − cost of goods sold) ÷ revenue × 100.
Examples
- Revenue 100, cost 60
Gross margin: 40%
- Revenue 480,000, cost 312,000
Gross margin: 35%
- Revenue 75, cost 52.50
Gross margin: 30%
Limitations and assumptions
Confirm assumptions, units and applicable local rules before relying on results. Detailed content, accessibility and edge-case review remains ongoing.
Frequently asked questions
How do I calculate gross margin?
(Revenue − cost of goods sold) ÷ revenue × 100.
Gross margin or net margin?
Gross margin excludes operating expenses, interest and tax. Net margin includes them.
What counts as cost of goods sold?
Direct materials, direct labour and costs tied to producing what you sold.
How do I raise it?
Raise prices, cut input costs or shift toward higher-margin products.