Free tool
Free Gross Margin Calculator
Gross profit margin percentage calculator
Calculate gross margin %, gross profit dollars, gross margin ratio, and markup from revenue and cost of goods sold. Includes per-unit pricing, markup-to-gross-margin conversion, and reverse target-margin mode, a simple online alternative to Excel for manufacturers, wholesalers, Shopify stores, and staffing agencies.
Total sales before expenses
Direct product or service cost
Results
Formula: Gross margin % = (Revenue − COGS) ÷ Revenue × 100. Gross profit = Revenue − COGS. Markup % = (Revenue − COGS) ÷ COGS × 100. This online gross margin calculator runs instantly in your browser, no download or Excel required.
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Online gross margin calculator for revenue and COGS
This gross margin profit calculator takes sales revenue and cost of goods sold (COGS) and returns gross profit, gross margin percentage, gross margin ratio, and markup. Whether you need a product gross margin calculator, sales gross margin calculator, or dollar gross margin calculator, enter your numbers and copy results instantly. No gross margin calculator download, it runs as a free browser app.
Gross margin calculator formula
The standard gross margin formula calculator uses:
- Gross profit = Revenue − COGS
- Gross margin % = (Gross profit ÷ Revenue) × 100
- Gross margin ratio = Gross profit ÷ Revenue
- Markup % = (Gross profit ÷ COGS) × 100
A 40% gross margin on $10,000 revenue with $6,000 COGS yields $4,000 gross profit and a 0.40 ratio. Use the calculator gross margin tab for quick checks or the per-unit mode for product-level pricing.
Gross margin vs markup calculator
Markup and gross margin measure the same profit differently. Markup gross margin calculator logic: a 100% markup equals 50% gross margin. A gross margin to markup calculator reverses the math. Our markup ↔ margin mode handles both directions, ideal when suppliers quote markup but your P&L reports margin.
Gross margin calculator for manufacturers, wholesale & Shopify
Manufacturers and wholesalers use gross margin per unit and FIFO-style unit costing in the per-unit tab. E-commerce teams running a Shopify gross margin calculator or Shopify gross profit margin calculator workflow can model price, landed cost, and quantity before updating store prices. Staffing agencies use reverse mode as a staffing gross margin calculator to hit target bill-rate margins on placements.
Gross profit margin calculator UK
Select GBP (£) for UK formatting. This gross margin calculator UK and gross profit margin calculator UK tool applies the same formulas used in Xero, Sage, and spreadsheet templates, gross margin rate calculator output matches standard UK accounting practice. Copy figures into your accounts or commission worksheets.
Gross margin calculator NZ
Choose NZD for New Zealand dollar display. Useful for livestock gross margin calculator scenarios, retail markup checks, and farm-gate pricing where margin % drives buying decisions.
Gross profit margin calculator Excel & spreadsheet tips
Building a gross margin calculator excel template? Column A: revenue, B: COGS, C: =A2-B2 (gross profit), D: =(C2/A2)*100 (margin %). This gross profit margin calculator excel alternative avoids formula errors and works on mobile. Paste results into your gross profit margin calculator excel download or Google Sheet when you need a permanent record.
How to calculate gross margin, quick steps
- Enter total revenue (or price × units in per-unit mode).
- Enter COGS, direct materials, labor, or unit cost × quantity.
- Read gross margin %, gross profit dollars, and gross margin ratio.
- Use reverse mode to find revenue needed for a target margin %.
- Switch to markup ↔ margin to convert between pricing methods.
Frequently asked questions
What is the gross margin calculator formula?
Gross margin % = (Revenue − Cost of Goods Sold) ÷ Revenue × 100. Gross profit (in dollars) = Revenue − COGS. The gross margin ratio is the same as gross margin % expressed as a decimal (e.g. 40% = 0.40). Markup % = (Revenue − COGS) ÷ COGS × 100. Use this free gross margin formula calculator to plug in your numbers instantly.
How do I use a gross profit margin calculator in Excel?
In Excel, put revenue in one cell and COGS in another. Gross profit = Revenue − COGS. Gross margin % = (Gross profit ÷ Revenue) × 100. Example: =((A2-B2)/A2)*100. For markup: =((A2-B2)/B2)*100. This free gross margin calculator Excel alternative runs the same formulas in your browser, no template download required. Copy results into your spreadsheet or use our markup ↔ margin converter.
What is a gross margin ratio calculator?
A gross margin ratio calculator finds gross profit divided by revenue, the gross margin ratio. If gross profit is $4,000 on $10,000 revenue, the ratio is 0.40 (40% gross margin). The ratio is used in financial analysis, staffing agency pricing, wholesale benchmarks, and Shopify store reporting. This tool shows both gross margin % and the decimal ratio.
Is there a gross margin calculator Excel template I can use?
Many teams use Excel or Google Sheets templates with revenue, COGS, gross profit, and margin % columns. This free online gross margin calculator replaces a one-off spreadsheet: enter revenue and cost, get gross margin percentage, dollar gross margin, markup, and reverse target-margin pricing. Export values by copying results, ideal for manufacturers, wholesalers, staffing agencies, and e-commerce sellers.
What is the difference between gross margin and gross profit?
Gross profit is the dollar amount left after subtracting COGS from revenue. Gross margin (gross profit margin) is that profit expressed as a percentage of revenue. A gross margin vs gross profit calculator shows both: e.g. $4,000 gross profit on $10,000 sales = 40% gross margin.
How do I convert markup to gross margin?
Markup is profit as a % of cost; gross margin is profit as a % of revenue. Formula: Gross margin % = Markup % ÷ (100 + Markup %) × 100. A 50% markup equals 33.33% gross margin. Use the Markup ↔ margin tab in this gross margin markup calculator to convert in both directions.
How does a reverse gross margin calculator work?
Enter your target gross margin % and COGS. Required revenue = COGS ÷ (1 − Target margin % ÷ 100). Example: 40% target margin and $6,000 COGS → $10,000 revenue. Useful for pricing products, staffing jobs, and wholesale quotes.
Is this gross margin calculator free?
Yes. This simple gross margin calculator is free, runs in your browser, and requires no account. Use it as an online gross margin calculator app for UK, US, NZ, and other currencies, manufacturers, Shopify sellers, wholesalers, and agencies welcome.
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