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Gross Margin Calculator
Quick answer
If revenue is ₹5,00,000 and cost of goods are ₹3,00,000, the gross margin is 40%.
Gross margin formula: Gross margin (%) = (Revenue − Cost of goods) ÷ Revenue × 100.
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Gross margin
40%
What's left from revenue as profit, shown as a percentage rather than a raw amount, so it can be compared across different deal sizes.
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Gross margin
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About the Gross Margin Calculator
Gross margin is the share of revenue left after paying the direct cost of the goods you sold. It shows how much each rupee of sales contributes towards overheads and profit. Enter revenue and the cost of goods sold.
A rising gross margin means you are keeping more of every sale; a falling one is an early warning.
Gross margin formula
Gross margin (%) = (Revenue − Cost of goods) ÷ Revenue × 100
Things to keep in mind
- Gross margin is calculated on revenue; markup is calculated on cost. A 50% markup is a 33.3% margin.
- Include only direct costs such as materials and production labour in the cost of goods.
- Compare your margin with others in your industry.
See how the result changes
Each table re-runs this calculator with one value changed and everything else left as it is.
Gross margin by revenue
If revenue goes from ₹5,00,000 to ₹7,50,000, gross margin changes from 40% to 60% (+50%).
| Revenue | Gross margin |
|---|---|
| ₹2,50,000 | −20% |
| ₹3,75,000 | 20% |
| ₹5,00,000start | 40% |
| ₹7,50,000 | 60% |
| ₹10,00,000 | 70% |
Gross margin by cost of goods
If cost of goods goes from ₹3,00,000 to ₹4,50,000, gross margin changes from 40% to 10% (−75%).
| Cost of goods | Gross margin |
|---|---|
| ₹1,50,000 | 70% |
| ₹2,25,000 | 55% |
| ₹3,00,000start | 40% |
| ₹4,50,000 | 10% |
| ₹6,00,000 | −20% |
FINANCE GUIDE
A quick guide to Gross Margin
Use it to get an accurate gross margin in seconds — free, with no sign-up.
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See your gross margin the moment you enter your numbers.
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The same standard formula runs on our server for every calculation.
How to Use the Gross Margin Calculator
1
Enter Revenue
Provide your revenue.
2
Enter Cost of goods
Provide your cost of goods.
3
View Your Results
Get your gross margin instantly, calculated on our server.
What is Gross Margin?
This finance tool works out your gross margin instantly, so you don't have to do the math by hand.
“One quick calculation, so you always know your gross margin before you decide.”
What Affects Your Gross margin
Your gross margin depends on the values below.
Revenue
Changing your revenue changes your gross margin.
Cost of goods
Changing your cost of goods changes your gross margin.
Example Result
Here's what you can expect from a gross margin calculation:
- Revenue
- 500000
- Cost of goods
- 300000
- Gross margin
- 40%
Frequently Asked Questions
- How does revenue affect gross margin?
- If revenue goes from ₹5,00,000 to ₹7,50,000, gross margin changes from 40% to 60% (+50%).
- How does cost of goods affect gross margin?
- If cost of goods goes from ₹3,00,000 to ₹4,50,000, gross margin changes from 40% to 10% (−75%).
- How to calculate gross margin?
- Fill in revenue and cost of goods in the Gross Margin Calculator above and your gross margin is calculated instantly. Change any value to see how the result responds.
- What does an example gross margin calculation look like?
- If revenue is ₹5,00,000 and cost of goods are ₹3,00,000, the gross margin is 40%.
- Is this calculator free to use?
- Yes — every calculator on this site is completely free, with no sign-up or account required.
- How accurate is this calculator?
- It uses the standard formula and calculates on our server for every request, so results are precise for the values you enter.
- Is my data saved anywhere?
- No. Nothing you enter is stored or sent anywhere unless you choose to share a link with your values included.
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