Gross Margin Calculator

Analyze gross profit, profit margins, markups, and target price points

Cost of Goods Sold (COGS) ($) Production, purchase, or wholesale cost

Selling Price / Revenue ($) Final customer retail price

Gross Margin

60.0%

Gross Profit: $60.00

Markup Percentage 150.0% Profit as % of cost

Profit Multiplier 2.50× Price ÷ Cost

Cost Ratio 40.0% COGS as % of revenue

Profit per $100 Sales $60.00 Retained gross profit

Item Cost (COGS) ($) Unit manufacturing / inventory cost

Target Gross Margin (%) Desired margin (must be < 100%)

Target Selling Price

$109.09

Gross Profit per Unit: $49.09

Required Markup 81.8% Markup needed on cost

Target Margin Hit 45.0% Profit ÷ Price

Wholesale Markup Equivalent 1.82× Pricing factor on cost

Break-Even Sale Price $60.00 0% margin threshold

Unit Cost ($)

Unit Selling Price ($)

Units Sold

Operating Expenses (OpEx) ($) Rent, software, ads, admin, wages

Total Gross Profit

$17,500

Gross Margin: 58.3% | Total Revenue: $30,000

Net Profit (Operating) $11,000 Gross profit minus OpEx

Net Profit Margin 36.7% Net profit ÷ Total revenue

Total COGS $12,500 Unit cost × volume

OpEx Ratio 21.7% OpEx ÷ Total revenue