Unit Economics
Gross Margin & Markup Calculator
The share of every sales dollar left after the direct cost of making or buying the product — before rent, ads, or payroll.
Inputs
- Revenue — Total sales for the period, or the price of one unit.
- Cost of goods sold — What the goods cost you: materials, inbound freight, direct labor.
How to use this calculator
- Enter revenue (total sales or one unit's price) and the cost of goods sold behind it.
- Read the gross margin percentage, which is the share of each dollar left after direct costs.
- Compare it to peers in your industry; too thin here means overhead and ads have nothing to feed on.
What each term means
- Gross margin
- Revenue minus cost of goods, as a percentage of revenue.
- COGS
- The direct cost of what you sold: materials, freight-in, direct labor.
- Markup
- Profit as a percentage of cost, not price. It is always a bigger number than margin.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.