Business arithmetic / CLEARBYTE

Gross Margin Calculator

Gross margin is revenue minus included cost of goods, divided by revenue, multiplied by 100. Revenue of 1,000 and cost of 650 gives a gross profit of 350 and margin of 35%.

Isolated tool · network access blocked

Formula & method

Gross profit = revenue − included cost; gross margin (%) = gross profit ÷ revenue × 100.

Worked example

InputValue
Sales revenue1,000 ¤
Included cost of goods650 ¤
Result
ResultValue
Gross profit350 ¤
Gross margin35 %

Compare scenarios

The first input changes while the other example inputs stay fixed. These are arithmetic scenarios, not forecasts.

Compare scenariosSales revenue ¤Gross profitGross margin
−20%800150 ¤18.75 %
Example1,000350 ¤35 %
+20%1,200550 ¤45.83333333 %

Assumptions & limits

Margin uses sales revenue as its denominator; markup uses cost. This arithmetic does not decide which costs belong in an accounting category. Use a consistent definition and account for overhead, taxes and other expenses separately.

Displayed results are rounded. Calculations use unrounded JavaScript numbers; small floating-point differences are possible.

Use the same currency and reporting period for every monetary input. This tool does not fetch prices, exchange rates or account data.

Works in your browser

The interactive tool runs in a sandbox with network access blocked. ClearByte and the advertising scripts cannot read values inside it. Browser extensions and a compromised device remain outside this protection.

Sources & definitions

Method checked:

Keep learning

Continue with a related task