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Gross Margin
Gross profit margin — % of price kept after direct cost
Formula: margin = (selling_price − cost) ÷ selling_price × 100
Gross Margin = (Selling Price − Cost) / Selling Price × 100. The fraction of revenue you keep before fixed costs and overhead. Below 15% is typically too thin to absorb operating expenses.
Inputs
Results
Gross Margin
35 %
Recommended next actions
- →Negotiate input cost down before raising price
- →Compare margin against industry benchmark
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Formula
margin = (selling_price − cost) ÷ selling_price × 100Worked example
Inputs
selling_price100
cost65
Outputs
margin35
Use for estimation. Verify safety-critical calculations with qualified review.