Profit Margin Calculator — Gross Margin & Markup Free
Free profit margin calculator. Calculate gross profit, gross margin percentage, and markup percentage from revenue and cost of goods sold.
Gross Profit Margin
40%
Gross Profit: $20,000
Markup Ratio+66.67%Based on cost basis
Total Cost basis$30,000Overhead + manufacture
Margin settings
$50,000
$30,000
Margin vs Markup
Gross Margin calculates profit relative to the selling price (revenue). It represents the percentage of each dollar of revenue that remains as profit.
Markup calculates profit relative to the cost of goods sold (COGS). It represents how much you mark up the cost of an item to arrive at the selling price.
Formulas:
- Margin = (Gross Profit / Revenue) × 100
- Markup = (Gross Profit / Cost) × 100