How to use the Product Margin Calculator
Enter the product sales revenue and product 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 249, cost 140
Gross margin: 43.7751004%
- Revenue 18, cost 14.50
Gross margin: 19.44444444%
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 product margin?
(Revenue − cost of goods sold) ÷ revenue × 100.
Margin or markup?
Margin is a share of the selling price; markup is a share of cost. A 60% markup on cost is a 37.5% margin.
What should I include in cost?
Materials, direct labour and freight in. Overhead is excluded from gross margin.
What is a good margin?
It varies by industry; compare with similar products.