Each product or service within your business has a gross margin, which is the difference between the selling price and the cost price of the product. The gross margin is used to calculate the gross margin percentage.
This gross margin calculator will help you to estimate the gross margin percentage of your product for use in the Financial Projections Template.
If your business has multiple products then use this gross margin calculator for each product and then average the margin using our weighted average gross margin calculator.
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. It also calculates the markup percentage of the product.
Gross Margin Calculator Download
The gross margin calculator is available for download in Excel format by following the link below.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.