Business calculator

Free Gross Profit Calculator

Calculate gross profit and gross margin from revenue and cost of goods sold.

Free to useBrowser-based calculationNo account requiredResults update instantly

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.

Private in your browser

Values are calculated locally and are not stored or sent anywhere.

Use the calculator

Enter the figures you already have

  1. 1

    Add your inputs

    Use the labels and period shown in the form.

  2. 2

    Review the math

    Results update as your assumptions change.

  3. 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.

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