Gross margin calculator
Gross margin measures the proportion of revenue remaining after direct cost of goods or services sold.
Calculated from the assumptions shown. Review the methodology and limitations before using the result.
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How the analysis works.
Gross profit equals revenue less cost of goods sold. Gross margin equals gross profit divided by revenue.
What this does not replace.
Classification of direct costs varies by business. For useful comparisons, revenue and cost definitions should be consistent across periods and companies.
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Open →Questions about this tool.
Is gross margin the same as net margin?
No. Gross margin subtracts direct cost of sales, while net margin reflects operating costs, finance costs, taxes and other items.
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