Work out gross profit and gross margin from revenue and the direct cost of goods sold.
Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup. Margin is what funds every fixed cost in a business business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
Gross Profit
Margin % = (Revenue − Cost of goods sold) ÷ Revenue × 100
Margin % = (Revenue − Cost of goods sold) ÷ Revenue × 100 Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup.
Margin is what funds every fixed cost in a business business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
This calculator takes 2 inputs: Revenue, Cost of goods sold. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.