Gross Margin Calculator
Calculate gross margin percentage.
Gross Margin measurements
Enter your values, then calculate.
Result
How to calculate gross margin
Gross margin measures the percentage of revenue remaining after subtracting the cost of goods sold — a fundamental profitability metric.
How the calculation works
Gross margin = ((Revenue − COGS) ÷ Revenue) × 100.
Example
$100,000 revenue, $65,000 COGS: ((100,000−65,000)÷100,000)×100 = 35%.
Frequently asked questions
How is Result calculated?
Result = ([Revenue] − [Cost of goods sold]) ÷ [Revenue] × 100.
Is the Gross Margin Calculator free to use?
Yes — every calculator on Simple Calculator Tools is free, runs in your browser, and does not require an account.
Gross Margin Calculator
Gross margin = ((Revenue − COGS) ÷ Revenue) × 100.
Let's understand your gross margin result.
Calculate a result above and this guide will help you interpret it using this calculator's own formula and explanation.
Pro Tips for Gross Margin
- Compare gross margin against industry benchmarks, since typical margins vary enormously by business type (retail vs. software, for example).
- Track gross margin trends over time to catch cost increases or pricing pressure early.
Common Gross Margin Mistakes to Avoid
- Comparing gross margin across fundamentally different industries as if similar margins should be expected.
When to Use This Calculator
Gross margin measures the percentage of revenue remaining after subtracting the cost of goods sold — a fundamental profitability metric.