Determine gross profit margin and markup percentage based on revenue and costs.
Business Inputs
Profitability Results
Gross Margin40.00%
Gross Profit$400.00
Implied Markup66.67%
Revenue Breakdown
About this calculator
Overview
Gross profit margin measures how much out of every dollar of sales a company actually keeps in profit. Markup is the percentage added to the cost price to reach the selling price.
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Pro Tips
Margin is expressed as a percentage of the selling price, while markup is a percentage of the cost.
Healthy margins vary significantly by industry (e.g., luxury goods have higher margins than groceries).
A common mistake is confusing the two: a 50% markup results in a 33.3% margin.
Improving margins can be achieved by raising prices or reducing the cost of goods sold (COGS).
