The Gross Margin Calculator is an essential financial tool designed to help businesses accurately measure and analyze their profitability. By simply inputting your revenue and cost of goods sold (COGS), this calculator instantly determines your gross margin, providing crucial insights into your business’s financial health. Understanding your gross margin is fundamental for making informed decisions about pricing strategies, cost management, and overall business operations. This tool is particularly valuable for retailers, manufacturers, and service providers who need to maintain healthy profit margins in competitive markets. Whether you’re a small business owner or financial professional, our Gross Margin Calculator helps you track performance and identify opportunities for improvement. Start calculating your gross margins today to make more informed business decisions and optimize your profitability.
Gross margin shows what share of each sales dollar you keep after direct costs—U.S. retailers average 23.5% (Damodaran, 2023). This calculator subtracts COGS and optional direct expenses from revenue, then divides the result by revenue to reveal both gross profit and gross-margin %. Just enter your numbers and read the instant verdict.
