Overview
What Is a Gross Profit Calculator?
This tool calculates gross profit (revenue minus cost of goods sold) and the corresponding gross profit margin percentage.
Calculate gross profit and margin instantly.
This tool calculates gross profit (revenue minus cost of goods sold) and the corresponding gross profit margin percentage.
Useful for understanding basic business profitability before operating expenses.
Input your total sales revenue.
Input the direct costs of producing your goods/services.
Both results update automatically.
Gross Profit = Total Revenue - Cost of Goods Sold (COGS)
Gross Profit Margin% = (Gross Profit ÷ Revenue) × 100
Cost of Goods Sold - the direct costs of producing the goods or services sold, like materials and direct labor.
Gross profit subtracts only COGS; net profit subtracts ALL business expenses including overhead, marketing, and taxes.
This varies enormously by industry - retail, manufacturing, and service businesses typically have very different benchmark margins.
No, calculations happen entirely in your browser.
No, gross profit is before operating expenses like rent, salaries, and marketing - those come into play for net profit.
Related - our margin calculator focuses on per-item pricing, while this is often used for overall business financial reporting.
Yes, gross profit is a standard line item in business income statements.
Yes, completely free with no sign-up required.