Gross Profit Calculator
Calculate gross profit and gross profit margin from revenue and cost of goods sold.
How this calculator works
How to use this calculator
Enter your total revenue and cost of goods sold. The calculator subtracts COGS from revenue and also shows the gross profit margin percentage.
Formula used
Gross Profit = Revenue − Cost of Goods Sold
Gross Profit Margin = Gross Profit ÷ Revenue × 100
Example calculation
Revenue = $50,000 and COGS = $30,000. Gross Profit = $20,000 and Gross Profit Margin = 40.00%.
What the result means
Gross profit shows how much money remains after direct production or service delivery costs. The margin helps compare profitability across products, periods, or business units.
Frequently asked questions
What is gross profit?
Gross profit is the amount left after subtracting cost of goods sold from revenue.
Is gross profit the same as net profit?
No. Gross profit only removes direct costs, while net profit also removes operating expenses, interest, taxes, and other costs.
Why is gross profit margin useful?
It shows how efficiently a business turns sales into profit before overhead expenses.