What is gross profit margin?

Gross profit margin is the percentage of revenue remaining after subtracting the cost of goods sold. It shows how efficiently a business generates profit from sales.

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price. They are different numbers for the same sale.

How do I calculate gross profit?

Gross profit is calculated by subtracting the cost price from the selling price. For example, if you sell an item for £25 that cost £10, your gross profit is £15.

Free Gross Profit Margin Calculator UK (2026)

Written by Calvin Lo, Founder of Aphelios Software | July 2026 | 5 min read

Calculate gross profit, profit margin, and markup instantly. Enter your cost price and selling price to see your profitability in GBP and percentage.

Built for UK retailers, eCommerce sellers, market traders, and small business owners.

Gross Profit Margin Calculator

Cost Price (£)

Selling Price (£)

Gross Profit

£0.00

Gross Profit Margin

Markup

How This Gross Profit Calculator Works

This calculator takes your cost price and selling price to compute three key business metrics. Gross profit is the difference between selling price and cost. The margin shows profit as a percentage of revenue, while markup shows profit as a percentage of cost.

Formulas Used

Gross Profit = Selling Price − Cost Price
Gross Profit Margin = (Gross Profit ÷ Selling Price) × 100
Markup = (Gross Profit ÷ Cost Price) × 100

Real-World Example

A UK market trader buys products for £10 each and sells them for £25. The gross profit is £15 per unit, the margin is 60%, and markup is 150%. Understanding these numbers helps with pricing strategy and stock purchasing decisions.

Who Should Use This Tool?

UK retailers pricing products for physical stores
eCommerce sellers calculating product profitability
Market traders and pop-up shop owners
Wholesalers and distributors evaluating margins
Small business owners reviewing pricing strategy

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Know Your Margins & Take Control of Pricing

Stop guessing your product profitability. Aphelios inventory management software tracks cost prices, selling prices and margins in real time so you always know exactly how much profit you're making on every sale.

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