# Gross Margin Calculator

This gross margin calculator will help you to estimate the gross margin percentage of your product for use in the Financial Projections Template.

Each product or service within your business has a gross margin associated with it. As can be seen the gross margin is simply the difference between the selling price and the cost price of the product.

` Gross margin = Selling price - Cost price`

Subsequently the gross margin is used to calculate the gross margin percentage.

` Gross margin % = Gross Margin / Selling price`

## Gross MarginÂ Example

In order to demonstrate suppose a product has a selling price of 340 and a cost price of 190. Accordingly the calculation of the gross margin and gross margin percentage are as follows.

```Gross margin = Selling price - Cost price
Gross margin = 340 - 190 = 150
Gross margin % = Gross margin / Selling price
Gross margin % = 150 / 340 = 44.1%```

## Multiple Products

If your business has multiple products then use this gross margin calculator for each product and average the margins using our weighted average gross margin calculator.

As can be seen the Excel sheet, available for download below, helps a business calculate the gross margin percentage for its products by entering the cost components and selling price of the product. Additionally it also calculates the markup percentage of the product.