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Business & Accounting

Gross Profit Calculator

Compute gross profit and gross margin from revenue and cost of goods sold (COGS).

Your inputs

Results

Gross profit

$20,000.00

Gross margin
40%
COGS as % of revenue
60%

✓Exact calculation — rounded only for display

What this calculator does

Gross profit is what remains after paying for the goods or services you sold, before overheads. Gross margin expresses it as a share of revenue.

Formula and method

Gross profit = revenue − COGS; Gross margin = gross profit ÷ revenue

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Revenue (net sales): 50000 (any currency)
  • Cost of goods sold (COGS): 30000 (any currency)

Results

  • Gross profit: 20,000
  • Gross margin: 40%
  • COGS as % of revenue: 60%

How to read the results

A falling gross margin can signal rising input costs or price pressure.

Assumptions and limitations

  • COGS includes direct materials and labour; it excludes rent, marketing and administration.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Gross margin vs markup?

Margin divides profit by price; markup divides it by cost. A 40 % margin is a 66.7 % markup.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy