pricing
Gross Margin Calculator
Calculate gross margin based on revenue and cost of goods sold.
Gross Margin
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How it works
Use this calculator to work out gross margin based on revenue and cost of goods sold.
Formula
Gross Margin (%) = ((Revenue - Cost of Goods Sold) / Revenue) × 100
Example
If revenue is 1000 and cost of goods sold is 650:
- Gross Profit = 350
- Gross Margin = 35%
Why it matters
Gross margin helps you measure how efficiently you generate profit from direct production or product costs.
Common use cases
- Product profitability analysis
- Pricing reviews
- Supplier comparisons
- Business performance reporting