Sales Calculator
Calculate gross profit, gross margin, markup, cost, and revenue from any two known values. Enter any two sales variables and solve for all five instantly.
Select which two values you know, enter them, and calculate the remaining variables.
| Variable | Value |
|---|
| Cost | Markup % | Revenue | Gross Profit | Gross Margin % |
|---|---|---|---|---|
| $50 | 10% | $55.00 | $5.00 | 9.09% |
| $50 | 20% | $60.00 | $10.00 | 16.67% |
| $50 | 25% | $62.50 | $12.50 | 20.00% |
| $50 | 33% | $66.50 | $16.50 | 24.81% |
| $50 | 50% | $75.00 | $25.00 | 33.33% |
| $50 | 75% | $87.50 | $37.50 | 42.86% |
| $50 | 100% | $100.00 | $50.00 | 50.00% |
| $50 | 150% | $125.00 | $75.00 | 60.00% |
| $50 | 200% | $150.00 | $100.00 | 66.67% |
The Five Sales Variables and Their Formulas
Every sales transaction involves five key variables. Knowing any two dollar-related values allows you to solve for all five. Here are the three core equations that define the relationships:
2. Markup (M%) = Gross Profit / Cost x 100
3. Gross Margin (G%) = Gross Profit / Revenue x 100
Solving for Each Variable
Revenue = Cost / (1 – Gross Margin%)
Cost = Revenue – Profit
Cost = Revenue x (1 – Gross Margin%)
Cost = Profit / Markup%
Profit = Revenue – Cost
Profit = Revenue x Gross Margin%
Markup% = Profit / Cost x 100
Margin% = Profit / Revenue x 100
Markup vs Margin: The Key Difference
Markup and margin are often confused but they measure profit from different reference points. Understanding the distinction is essential for accurate pricing.
Gross Markup
Markup is the amount added to the cost of a product to arrive at the selling price, expressed as a percentage of cost. A 50% markup on a $100 cost item means adding $50 to get a selling price of $150.
Gross Margin
Gross margin measures profit as a percentage of selling price (revenue). The same $100 cost item sold at $150 has a gross margin of $50 / $150, which equals 33.33%. Gross margin is always lower than markup on the same transaction.
Converting Between Markup and Margin
Markup = Margin / (1 – Margin)
Example: 50% Markup = 50% / 150% = 33.33% Margin
Example: 40% Margin = 40% / 60% = 66.67% Markup
Many pricing errors occur because business owners use markup percentages when they intend to achieve a specific margin. Always clarify which metric is being used before setting prices.
How to Use the Sales Calculator
This sales calculator requires only two inputs to solve for all five variables. At least one input must be a dollar value.
- Select the two variables you already know from the dropdown menu.
- Enter your known values in the input fields that appear.
- Click Calculate to instantly see cost, revenue, gross profit, markup, and gross margin.
Practical Applications
- Setting product prices to achieve a specific target margin.
- Verifying that a quoted selling price meets your minimum profit requirements.
- Comparing profitability across different products or categories.
- Calculating how a cost increase affects your margin if the selling price stays fixed.
- Determining the cost you can afford to pay given a fixed selling price and target margin.