Gross profit calculator
Calculate gross profit, gross margin and markup from your revenue and cost of sales.
- Instant result
- No sign-up needed
- Up to date 2026/27 rates
★★★★★ Rated Excellent by 300+ clients
Gross profit calculator
An estimate using 2026/27 rates for England, Wales and Northern Ireland unless stated. It is not tax advice.
What this calculator does
Gross profit is revenue less the direct costs of making or buying what you sell. Margin shows it as a share of revenue and markup as a share of cost. They are different numbers, which is a common source of pricing mistakes.
How to use it
- Enter your revenue for the period.
- Enter the direct cost of sales.
- Read the gross profit, margin and markup.
Things to watch
A 50% markup is only a 33% margin.
Overheads such as rent and wages come out after gross profit.
Include delivery and packaging in cost of sales if you buy them for each sale.
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Frequently asked questions
How do I calculate gross margin?
Divide gross profit by revenue and multiply by 100.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of cost.
What is a good gross margin?
It varies widely by sector, so compare yourself with similar businesses.