Free tool
Gross margin calculator - gross profit and margin in seconds
Enter the selling price and the cost price, and the calculator works out the gross profit and the gross margin. Or go the other way: enter the cost price and the margin you want, and get the selling price.
Materials at purchase price + wages for the hours the job takes.
Result
- Selling price
- DKK 10,000.00
- Cost price
- - DKK 6,000.00
- Gross profit
- DKK 4,000.00
- Gross margin
- 40%
- Equals markup
- 66.7%
All amounts are excl. VAT unless stated otherwise. The calculation runs in your browser - nothing is sent or stored.
The formula
Gross profit = selling price - cost price
Gross margin = gross profit / selling price × 100
Selling price = cost price / (1 - margin / 100)
All figures are excluding VAT. The margin is a share of the selling price - so it can never reach 100% as long as there is a cost price. Working with markup instead? Use the markup calculator.
Read more in the guides: gross margin for tradespeople · gross profit on quotes.
Worked example
A quote is for DKK 10,000 excl. VAT. Materials and wages for the job cost DKK 6,000.
Gross profit = 10,000 - 6,000 = DKK 4,000
Margin = 4,000 / 10,000 × 100 = 40%
If you want a 45% margin on the same cost price instead:
Selling price = 6,000 / (1 - 0.45) = 6,000 / 0.55 = DKK 10,909.09
The gross profit is then DKK 4,909.09, and a private customer pays DKK 13,636.36 incl. VAT.
Build the whole quote with your own prices
The calculator works out one number. Calco works out the whole quote: materials from your wholesaler's price file, your hourly rates and your markup, VAT and total - ready to send with a link the customer can accept online.