Distinguish gross margin on selling price from markup on cost. Enter the assumptions you want to test, calculate the result, and download the calculation and inputs as CSV.
Enter your assumptions
Use comparable amounts excluding recoverable indirect taxes. The result is gross profit before overhead, interest and income tax; it is not net business profit.
Your calculated scenario
Use comparable amounts excluding recoverable indirect taxes. The result is gross profit before overhead, interest and income tax; it is not net business profit.
Calculation method#
Gross margin = (price − cost) ÷ price × 100. Markup = (price − cost) ÷ cost × 100.
Assumptions and limits#
Use comparable amounts excluding recoverable indirect taxes. The result is gross profit before overhead, interest and income tax; it is not net business profit.
The result is a numerical illustration, not a quotation, tax filing or recommendation to buy a product. Check actual lender, product or transaction terms before making a decision.
Using the result#
Change one input at a time to understand its effect. Keep the calculation period and rate basis consistent. The downloadable CSV records your inputs so another person can review the same scenario. Changing an input clears the previous result until you calculate again.
Explore the other free business tools and calculators or contact SigmaTenders for business compliance support.