Question 1

How do you calculate gross profit margin?

Accepted Answer

Gross profit margin is calculated as: (Sale Price - Cost Price) ÷ Sale Price × 100. For example, if you sell a product for $100 that cost $60, your gross profit is $40 and your margin is 40%.

Question 2

What is the difference between margin and markup?

Accepted Answer

Margin is gross profit as a percentage of the selling price. Markup is the amount added to cost as a percentage of the cost price. A 50% markup equals a 33.3% margin.

Question 3

How do I calculate my selling price from cost and margin?

Accepted Answer

Selling Price = Cost Price ÷ (1 - Margin%). Enter your cost price and desired margin percentage into the GP Calculator and the selling price is calculated automatically.

Question 4

What is a good gross profit margin?

Accepted Answer

A good gross profit margin varies by industry. Retail typically targets 30–50%, SaaS businesses often achieve 70–90%, while manufacturing sits around 20–40%. Use the GP Calculator to track your margin.