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03 // Bidirectional STEM Calculators // FINANCEGM (%) = ((R - COGS) / R) × 100

Gross Margin, Revenue & COGS Calculator

Gross margin expresses gross profit (R - COGS) as a percentage of net selling revenue R, quantifying direct unit production profitability.

GM (%) = ((R - COGS) / R) × 100
Pick which value you want to calculate (or type into any field):Solving for: GM (%) — Gross Margin
Calculated

Percentage of revenue retained after direct COGS

198
%

Net selling price or top-line revenue

11,000,000.00

Direct unit manufacturing, hosting, or wholesale cost

11,000,000.00
Calculated Result · Gross Margin (GM (%))
60

Step-by-Step Calculation

01Canonical Law: GM (%) = ((R - COGS) / R) × 100
02Given Inputs (Base Units): R = 250 $, COGS = 100 $
03Solve for GM (%) (Gross Margin): GM (%) = 60

Gross margin expresses gross profit (R - COGS) as a percentage of net selling revenue R, quantifying direct unit production profitability.

Real-World Reference Values

Enterprise B2B SaaS75% – 85% GM

Cloud hosting & customer support in COGS

Direct-to-Consumer Apparel55% – 68% GM

Landed unit cost vs retail price

Supermarket / Grocery Retail22% – 28% GM

High-turnover low-margin distribution

20-Row Comparison Table

Gross Margin (GM (%)) · Selling Revenue (R)

Gross Margin, Revenue & COGS Calculator — Selling Revenue → Gross Margin
#Selling Revenue ($)Gross Margin (GM (%))Δ %
01250 $Current60 0.00%
027,250.94 $98.6209 +64.37%
0314,500.88 $99.3104 +65.52%
0421,750.82 $99.5402 +65.90%
0529,000.76 $99.6552 +66.09%
0636,250.70 $99.7241 +66.21%
0743,500.64 $99.7701 +66.28%
0850,750.58 $99.803 +66.34%
0958,000.52 $99.8276 +66.38%
1065,250.46 $99.8467 +66.41%
1172,500.40 $99.8621 +66.44%
1279,750.34 $99.8746 +66.46%
1387,000.28 $99.8851 +66.48%
1494,250.22 $99.8939 +66.49%
15101,500.16 $99.9015 +66.50%
16108,750.10 $99.908 +66.51%
17116,000.04 $99.9138 +66.52%
18123,249.98 $99.9189 +66.53%
19130,499.92 $99.9234 +66.54%
20137,749.86 $99.9274 +66.55%
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Frequently Asked Questions

How is Gross Margin different from Markup?+

Gross Margin divides profit by Selling Price R ((R - COGS)/R), whereas Markup divides profit by Cost ((R - COGS)/COGS). A 60% gross margin equals a 150% markup.

How do I price a product to achieve a 70% gross margin?+

Lock R (Selling Revenue), enter your unit COGS, and set GM (%) to 70. The engine computes R = COGS / (1 - 0.70).

Why can gross margin never exceed 100%?+

So long as COGS is positive, gross profit (R - COGS) is strictly less than revenue R, bounding gross margin below 100%.