How to use this tool
Enter a cost and selling price in the same currency. Gross profit is selling price minus cost. Gross margin divides that difference by selling price; markup divides it by cost. The calculation excludes any expense you have not included in the cost field and is not a net-profit forecast.
Try these values
A cost of 60 and selling price of 100 give gross profit of 40, margin of 40% and markup of about 66.67%.
Common questions
Can margin be negative?
Yes. Selling below the entered cost gives a negative gross profit and margin.
What happens with zero cost?
Gross margin can be calculated, but markup is undefined because its denominator is zero.
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