Gross Margin Calculator
Gross margin shows how efficiently you produce and sell your product before overheads kick in. This calculator gives you gross profit, gross margin and the markup implied by your pricing.
How it works
Gross profit is revenue minus the cost of goods sold. Gross margin is that profit as a percentage of revenue. Markup is profit as a percentage of cost. Together they define whether your price covers production and leaves room for the rest.
Worked example
Example: Revenue €100,000, COGS €65,000 → gross profit €35,000, margin 35%, markup 54%.
Recommendations
- Benchmark against your industry — 30–50% is common for healthy product businesses.
- Watch COGS closely: a small cost increase can erase the whole margin.
- Use markup when pricing; use margin when reporting to stakeholders.
Tips & advice
- Gross margin below 20% usually means pricing or procurement needs work.
- Service businesses often enjoy higher gross margins than product businesses.
- Include shipping, packaging and storage in COGS for an honest margin.
Next steps & suggestions
- See what is left after every other cost with the Net Margin Calculator.
- Set your selling price with the Sale Price Calculator.
- Find how many units you need to sell with the Break-even Calculator.
ROAS Calculator
A high ROAS looks great, but profit is what pays the bills. This calculator shows your ROAS, the profit behind it, and the break-even ROAS you must exceed to actually make money.
Net Margin Calculator
Gross margin tells you about your product; net margin tells you about your business. After every cost is paid, what percentage of revenue is actually yours?
Sale Price Calculator
Cost-plus pricing is a recipe for margin erosion. This calculator works the other way: you decide the margin, and it tells you the price that guarantees it.
Break-even Calculator
Before you make a euro of profit, you must cover your costs. This calculator finds the exact sales volume and revenue where you break even — and where profit begins.
Gross Margin Calculator
It is 100% free, private and requires no signup.
Try it nowFrequently Asked Questions
A ROAS above your break-even ROAS is profitable. For a 40% margin, break-even is 2.5x, so aim above that after accounting for all costs.
Margin is profit divided by the selling price. Markup is profit divided by the cost. A 60% margin equals a 150% markup.
Yes — every calculator is 100% free, with no signup, no limit and no hidden cost.
No. All calculations run instantly in your browser. Your inputs are never sent to a server or saved.
They use standard financial formulas and are ideal for estimates. Actual figures can vary due to taxes, fees and local rules, so confirm critical numbers with a professional.
More Free Tools
Explore the whole collection — no signup, 100% free & private.