Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is only a 33% margin.

No — it's a free illustration. Your actual Creditcorp offer depends on an assessment of your company.

Gross margin & markup calculator — Calculators

How to use it

Enter your figures above — the result updates instantly and nothing leaves your browser. Gross margin & markup calculator results are illustrative and not a quote or credit decision.

How to interpret the result

The calculator gives you gross margin and the equivalent markup on cost side by side, which is the point — the two numbers describe the same pound of profit from different angles, and reading only one tends to mislead. A limited company pricing a new contract, for instance, might quote a healthy-sounding markup on cost while the margin on the sale price is thinner than it looks, simply because the two percentages are built from different bases.

Treat the output as a snapshot of cost of goods sold against revenue for whatever period or job you enter, not as a statement about overall company profitability. Gross margin says nothing about overheads, finance costs or tax — a business can show a solid gross margin here and still be under pressure once fixed costs are taken into account further down the profit and loss account.

Limitations and good practice

The result is only as reliable as what you put into cost of goods sold. Some companies include direct labour and delivery in that figure, others don't, and switching between the two conventions from one calculation to the next will make margin look like it's moved when the underlying business hasn't changed at all. Pick a consistent definition and apply it every time you use the tool.

This calculator is a planning aid, not an accounting record — it won't replace management accounts or a conversation with your accountant when you're setting prices or reviewing performance. As the page's own FAQ makes clear, nothing here is a quote or a lending decision; a director comparing margin trends over time is better served by running the same inputs consistently and keeping the calculation next to the contribution margin calculator and the EBITDA margin calculator to see the fuller profitability picture.