Business calculator
Free Gross Profit Calculator
Calculate gross profit and gross margin from revenue and cost of goods sold.
Gross Profit Calculator
Enter values to see a focused result.
Understand the result
Calculate gross profit before operating expenses
Gross profit is revenue minus cost of goods sold. Gross margin expresses that result as a percentage of revenue and shows what remains before operating expenses.
Focused formula
The result uses only the inputs relevant to this business question.
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Values are calculated locally and are not stored or sent anywhere.
Use the calculator
Enter the figures you already have
- 1
Add your inputs
Use the labels and period shown in the form.
- 2
Review the math
Results update as your assumptions change.
- 3
Apply the result
Use it as a planning reference for the next decision.
Revenue and COGS
Use net sales or revenue for the period and the direct cost of the goods sold in that period.
Gross versus operating profit
Gross profit stops after direct production or purchase costs. Operating profit also subtracts operating expenses.
Worked example
$100,000 revenue minus $60,000 COGS equals $40,000 gross profit and a 40% gross margin.
Frequently asked questions
Practical questions people ask about this tool
What does gross profit exclude?
It excludes operating expenses such as overhead, marketing, and administration.
What if revenue is zero?
Gross profit can still be shown, but gross margin is marked unavailable because percentage division by zero is not meaningful.
Is gross margin the same as profit margin?
Not necessarily. Gross margin specifically uses revenue minus COGS, while broader profit margin may use a different profit definition.
Can gross profit be negative?
Yes. If COGS exceeds revenue, the result accurately shows a gross loss.
Related tools
Related business tools
Profit Margin Calculator
Calculate profit and margin.
Operating Margin Calculator
Subtract operating expenses too.
Contribution Margin Calculator
Calculate contribution before fixed costs.
Cost Per Unit Calculator
Calculate unit cost.
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