Margin Calculator

Gross Margin %: (Revenue - Cost) / Revenue × 100
Markup %: (Revenue - Cost) / Cost × 100

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Cost

Gross Margin

Gross Profit Margin vs. Markup

Businesses frequently confuse markup and margin. Margin is the ratio of profit to selling price, whereas markup is the ratio of profit to cost price.

Because margin is calculated against a larger denominator (the retail price), whereas markup is calculated against the cost price.