How to use the Gross Margin Calculator

Calculate gross margin percentage, gross profit and cost ratio from revenue and COGS.

Calculation formula

Gross profit = selling price − cost of goods sold; gross margin = gross profit ÷ selling price × 100.

Recommended steps

1. Enter values using the units shown beside each field.
2. Review whether the example assumptions match your situation.
3. Run the calculator and compare the key metrics.
4. Use the source data or official rates when precision matters.

Known limitations

Gross margin excludes selling expenses, taxes and other operating costs.