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Gross Margin Calculator — result sheet
Calculate gross profit, gross margin, and markup on cost from revenue and cost of goods sold.
Inputs used
Results
Visual chart
Breakdown
Calculation steps
Returned data table
Formula and methodology
Formula: Gross profit = revenue − cost of goods sold; gross margin = gross profit ÷ revenue × 100.
Gross margin isolates the money left after the direct cost of the goods or services sold, before operating expenses and other statement items. The calculator also shows markup on cost because margin and markup use different denominators and should not be confused.
This result follows the calculator's declared inputs, precision, validation boundaries, and model limits.
Input contract
- Revenue — currency units; minimum 1.0E-6; maximum 1.0E+18
- Cost of goods sold — currency units; minimum 0; maximum 1.0E+18
Worked example
| Input | Value |
|---|---|
| Revenue | 100000 |
| Cost of goods sold | 60000 |
Gross profit is 40,000 currency units, gross margin is 40%, and markup on cost is about 66.6667%.
Assumptions and limits
- Revenue and cost of goods sold use the same accounting period and currency units.
- Cost of goods sold includes the direct costs the user intends to compare with revenue; the tool does not classify accounting line items.
- Gross margin is not operating margin, net margin, cash margin, tax margin, or a guarantee of profitability.
Calculator note
Source and methodology
Use the official WorldCalculate methodology policy for the source, formula, precision, and boundary standards behind this calculator.
Planning estimate, not financial, medical, legal, or professional advice. © WorldCalculate — reuse with attribution. Built and curated by Hassan ALRowaie.
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