Gross Margin Calculator
Enter a selling price and the cost of goods sold to find your gross margin — and the equivalent markup, side by side.
On €100.00 of revenue with €60.00 of cost, the profit is €40.00. That's a gross margin of 40.00% — and an equivalent markup of 66.67%.
Results update as you type.
Formula
Gross margin is profit as a percentage of revenue:
margin% = (revenue − cost) / revenue × 100.
The same gap expressed as markup divides by cost instead:
markup% = (revenue − cost) / cost × 100.
For a profitable product, markup is always the larger of the two — they only equal at zero.
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Frequently asked questions
What's the difference between margin and markup?▾
Margin = profit / revenue; markup = profit / cost. Same euro gap, two denominators. €40 profit on a €100 sale that cost €60: 40% margin, ~67% markup. Retail thinks in markup, finance reports in margin — the two diverge on the same product, so don't substitute one for the other when pricing.
Is this gross or net margin?▾
Gross — only direct cost of goods sold is deducted from revenue. Net margin deducts overheads, salaries, social charges, rent, depreciation, finance costs, and tax. EU social charges in particular eat into net margins meaningfully (employer contributions can run 20–40% on top of salaries depending on member state). A 40% gross margin can become a low single-digit net margin once everything is settled.
What's a typical gross margin by industry?▾
SaaS: 70–85%. Hospitality: 65–75% on food. Grocery: 20–30%. Wholesale distribution: 10–20%. Manufacturing: 20–40%. Cross-border EU comparisons are noisy because labour, energy, and tax costs differ a lot — compare within your country first.
Does this account for VAT?▾
No — enter VAT-exclusive figures. VAT collected from customers is owed onward to the tax authority, so it isn't your revenue and shouldn't be in the margin calculation. The Reverse VAT Calculator strips VAT from a gross figure if your numbers are mixed in.
How do I price for a target margin?▾
price = cost / (1 − margin%/100). For 30% margin on €70 cost: 70 / 0.70 = €100. The Markup Calculator solves the same problem from the cost-up direction.