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What is left after direct delivery costs?
See gross profit, gross margin, and markup without mixing the denominators.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Annual revenue
- $5,000,000
- Annual cost of goods / services sold
- $3,000,000
Gross margin
Example result only, not a forecast or promise.
- Gross profit
- $2,000,000
- Markup on cost
- 66.7%
- Direct cost share
- 60%
What to do with this result
Reconcile product and customer margins to the accounts, including freight, returns, discounts, and cost allocation.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Gross profit = revenue − COGS. Margin = gross profit / revenue. Markup = gross profit / COGS.
Assumptions and limitations
- Revenue and COGS must use the same period and accounting basis.
- Gross profit is before operating overhead, financing costs, and tax.