FreeByte

Gross margin calculator

Revenue left after direct costs.

Built and reviewed by Dovanic, Founder and editor, FreeByteLast reviewed: 2026-08-18
$
$

Gross margin

42.0%

Gross profit

$105,000

With these inputs, gross margin comes to 42.0%. Gross profit works out to $105,000.

Cost ratio
58.0%

What moves the number · Gross margin

Input−10%Now+10%
Revenue35.6%42.0%47.3%
Cost of goods sold47.8%42.0%36.2%

Solve for an input

Whatmakesequal

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Revenue left after direct costs.

A worked example

Starting figures

Revenue
$250,000
Cost of goods sold
$145,000

What it returns

Gross margin
42.0%
Gross profit
$105,000
Cost ratio
58.0%

How to read the results

With the defaults above, gross margin works out at 42.0%.

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