Accounting Calculator
Gross Margin Calculator
Calculate gross profit, gross margin and cost percentage from sales revenue and cost of sales.
Calculator
Formulas
- Gross profit = Sales revenue − Cost of sales
- Gross margin = Gross profit ÷ Sales revenue × 100%
- Cost ratio = Cost of sales ÷ Sales revenue × 100%
Worked Example
Example: revenue of 50,000 and cost of 32,000 produces gross profit of 18,000 and a gross margin of 36%.
Result Explanation
Gross margin measures the portion of revenue remaining after direct cost of sales.
Use Cases
- Product pricing review
- Channel margin comparison
- Monthly performance analysis
Frequently Asked Questions
What happens when revenue is zero?
The calculator stops percentage division and shows a clear validation message.
Is gross margin the same as markup?
No. Gross margin uses selling price as the denominator; markup uses cost.
Accounting and Tax Disclaimer
These calculators provide general accounting, tax and business estimates only. Rules differ by jurisdiction, industry and accounting policy. Confirm formal filings, bookkeeping entries, audits and business decisions against applicable regulations and professional advice.
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