Free tool

Free gross margin calculator

Enter revenue and cost of goods to see your gross margin, gross profit, and markup instantly. Free, no sign-up — it all runs in your browser.

Free tool

Calculate gross margin

Enter revenue and the cost of goods sold.

Gross margin
65.0%
Profit as a share of revenue.
Gross profit
650.00
186% markup on cost

Everything is calculated in your browser — no data is sent anywhere, and there's no sign-up.

How it works

Understanding the numbers

Margin vs. markup

Gross margin is profit as a percentage of revenue: (revenue − cost) ÷ revenue × 100. Markup is profit as a percentage of cost. They're easy to confuse but very different numbers — a 50% markup is only a 33% margin.

Why it matters

Gross margin is what's left after the direct cost of what you sold, before labor, rent, and overhead. Tracking it by item and overall tells you where the real profit is — and where price or cost needs attention.

FAQ

Questions, answered

Margin is profit as a share of revenue; markup is profit as a share of cost. A 50% markup equals only a 33% margin, so they're not interchangeable.

The direct cost of the items you sold — mainly food and beverage — not labor, rent, or overhead.

Yes, with no login, and nothing you enter leaves your browser.

Stop calculating by hand

Menulisa tracks these numbers automatically from your real sales, labor, and inventory — always current.

Free Gross Margin Calculator for Restaurants · Menulisa