Gross Margin Calculator

Calculate gross profit margin, markup percentage, and optimize pricing strategy

Revenue & Costs

Enter your revenue and cost of goods sold

Total Revenue ($)

Cost of Goods Sold (COGS) ($)

Margin Analysis

Gross Profit Margin

0.00%

Target: 40-50% for most businesses

Gross Profit

Markup %

0.0%

Revenue Breakdown

Gross Profit0.0%

COGS0.0%

Total Revenue$0

COGS-$60,000

Gross Profit$0

Industry Benchmarks

Retail: 30-50% gross margin. Fashion/clothing 50-60%, grocery stores 20-30%.

SaaS/Software: 70-85% gross margin due to low variable costs per customer.

Manufacturing: 25-40% depending on industry. Automotive 15-20%, pharmaceuticals 60-80%.

Restaurants: 60-70% gross margin on food. Net margin much lower (3-5%) due to high operating costs.

Margin Improvement Strategies

•Negotiate better supplier pricing for lower COGS

•Reduce waste and improve production efficiency

•Optimize product mix - focus on high-margin items

•Implement value-based pricing instead of cost-plus

•Bundle products to increase perceived value