Gross Margin Calculator

Gross margin = profit / revenue. Markup = profit / cost. A 50% margin = 100% markup. Don't confuse them — the difference can cost you real money.

Direct costs of producing/delivering the product: raw materials, direct labour, manufacturing overhead. NOT rent of corporate office or marketing.

Yes in isolation — but higher margin products often sell lower volumes. Some of the largest companies (retailers) operate at 20% gross margin.

Driven by competition, commoditisation, and business model. Commodities have thin margins. Brands and niche products can command premium.