Gross Margin Calculator
Calculate gross profit, margin, and markup while keeping margin and markup clearly distinct.
Runs locally in your browser. Your figures are not saved or sent to a server.
Gross margin = (revenue − direct cost) ÷ revenue × 100
Result
- Gross profit
- EGP 130.00
- Gross margin
- 65%
- Markup on cost
- 185.71%
Margin is a percentage of revenue; markup is a percentage of cost. Gross profit does not deduct fixed expenses.
Margin is not markup
Margin divides profit by revenue, while markup divides profit by cost. The two percentages are different even when based on the same figures.
Gross profit does not deduct fixed or administrative expenses, so it should not be treated as net profitability.
Frequently asked questions
What is the difference between margin and markup?
Margin is a percentage of selling price; markup is a percentage of cost.
What if direct cost is zero?
Margin can still be calculated, but markup is undefined and is shown as unavailable.
Should fixed costs be included?
No. Use direct cost here and the break-even calculator for fixed costs.
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