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Gross Profit Calculator
Calculate your gross profit and gross margin percentage based on revenue and cost of goods sold.
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Fill in the fields above and click Calculate to see your results.
How to use
Calculate your gross profit and gross margin percentage based on revenue and cost of goods sold.
How it's calculated
Gross Profit
revenue - cogs
Profit before operating expenses
Gross Margin (%)
((revenue - cogs) / revenue) * 100
Percentage of revenue kept as profit
Examples
E-commerce store monthly
- Cost of Goods Sold (COGS):30,000,000
- Total Revenue:50,000,000
Industry Benchmarks
| Metric | Typical Range |
|---|---|
| Average for retail businesses is around 40-50% | 40 % |
Frequently Asked Questions
What is Gross Profit?
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
What does not include in Gross Profit?
Gross profit does not include operating expenses like rent, utilities, insurance, or office salaries. It only subtracts direct costs (COGS).
Why is gross margin important?
It shows how efficiently a company uses its labor and supplies in the production process. A declining gross margin over time may indicate rising costs or pricing pressure.
Related Calculators
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Net Profit Calculator
Calculate your bottom-line profit after all expenses, including COGS, operating costs, and taxes.
Profit Margin Calculator
Calculate gross and net profit margins for your business. Understand how much profit you make on each dollar of revenue.