Gross margin calculator
Gross & Price Margin Calculator
Use this price margin calculator to work out gross margin percentage and profit amount from cost and selling price. It shows how much profit is left inside the selling price.
Gross margin
20%
Selling at 100 on a cost of 80 leaves 20 profit and a 20% gross margin.
Profit amount
20
Selling price
100
How it works
Measure profit against the selling price
A margin calculator starts with cost and selling price, works out the profit in money, and then compares that profit with the selling price to show the gross margin percentage.
Formula
gross margin % = ((selling price - cost) ÷ selling price) × 100
First calculate profit from selling price minus cost, then divide that profit by the selling price.
Worked example
- 1. Start with a cost of 80 and a selling price of 100.
- 2. Subtract 80 from 100 to get 20 profit.
- 3. Divide 20 by 100 to get 0.2.
- 4. Multiply 0.2 by 100 to get a 20% gross margin.
When people use this
- Retail: check whether a selling price leaves enough margin.
- Services: compare client pricing against delivery cost.
- Finance: monitor the margin built into a pricing model.
- Planning: compare different selling prices before launch.
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