Gross Margin Calculator
Calculate gross margin percentage and gross profit. Analyze product profitability and pricing strategies with this business calculator.
Gross margin measures how much profit remains after deducting the cost of goods sold. It's essential for pricing decisions, inventory management, and understanding product profitability.
Calculator
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Gross Profit
$0.00
Gross Margin
0.00%
Cost Ratio
0.00%
Revenue
$0.00
Common use cases
- Product pricing analysis
- Industry benchmarking
- Profitability tracking
- Inventory decisions
How to use
- Enter total revenue or sales
- Enter cost of goods sold
- View gross profit and margin
FAQ
What's a good gross margin?
Varies by industry: Software 70-90%, Retail 25-50%, Manufacturing 25-35%, Grocery 20-25%.
How can I improve gross margin?
Increase prices, reduce COGS through better sourcing, improve production efficiency, or change product mix.
What's included in COGS?
Direct materials, direct labor, and manufacturing overhead directly tied to production.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.