Find gross margin from cost and revenue the classic way.
Please do not make financial decisions based on these results.
What is the Margin Calculator Classic?
Find gross margin from cost and revenue the classic way. To use the Margin Calculator Classic, enter revenue, cost; it returns gross margin, profit, markup, and shows them instantly as you type.
Where the Margin Calculator Classic fits
Find gross margin from cost and revenue the classic way. The main figure it returns is the Gross margin, worked out from the values you enter.
It belongs with the other sales, discounts & pricing tools. If you are comparing options or checking a result from another angle, try the Markup Calculator Classic, Margin and Markup Calculator or the Margin With Discount Calculator.
How to use the Margin Calculator Classic
- Enter your numbers. The inputs are Revenue ($), Cost ($). Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Gross margin, and the cards below show Profit, Markup. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Margin Calculator Classic using the default values shown in the calculator above:
Inputs
| Revenue ($) | 1,500 |
|---|---|
| Cost ($) | 900 |
Results
| Gross margin | 40% |
|---|---|
| Profit | $600.00 |
| Markup | 66.67% |
With these inputs the calculator returns Gross margin: 40%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Revenue ($) from 1,500 to 1,800 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Gross margin | 40% | 50% | +25% |
| Profit | $600.00 | $900.00 | +50% |
| Markup | 66.67% | 100% | +50% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Margin Calculator Classic reports Gross margin, profit and markup. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is a good gross margin?
Software often exceeds 70%; retail is often 25% to 50%.
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup equals a 33% margin.
Is sales tax included?
Only where a tool has a tax field. Enter your own local rate because it varies by location.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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