KEVOS® WORKOS · Money

Margin and Markup

What margin are you actually making?

Converts a cost and price into gross profit, gross margin (on price) and markup (on cost).

Open the calculatorRuns in your browser. No account needed.

How this tool works

Inputs, units and where to find them

InputUnitTypical source
Total cost / unit$Total unit cost from costing or the quote build-up
Selling price / unit$Selling price per unit, excluding GST

Method and formulas

  1. Gross profit = price − cost
  2. Gross margin = gross profit ÷ price
  3. Markup = gross profit ÷ cost

Limitations

  • Only as complete as the cost entered
  • Margin bands (30% and 10%) are general guides, not your pricing policy

Typical uses

  • Checking product or job profitability
  • Explaining margin versus markup
  • Reviewing price lists

Who it is for

  • Sales and estimating staff
  • Business owners

What you get

  • Margin band (healthy, thin, very low or loss)
  • Gross profit, margin and markup

Interpreting the result

  • A 30% markup is only a 23% margin; state which one you mean
  • Compare with your pricing policy for the product or customer

WORKOS tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.

Open the Margin and Markup calculator