Gross Margin Calculator

Formulas

The formulas used in the calculations are:

$$\text{profit} = \text{revenue} - \text{costs}$$

$$\text{gross margin} = 100 \times \frac{\text{profit}}{\text{revenue}}$$

or alternatively:

$$\text{gross margin} = 100 \times \frac{\text{revenue} - \text{costs}}{\text{revenue}}$$

To calculate revenue from profit and margin:

$$\text{revenue} = 100 \times \frac{\text{profit}}{\text{margin}}$$

To calculate costs from revenue and margin:

$$\text{costs} = \text{revenue} - \frac{\text{margin} \times \text{revenue}}{100}$$