Gross Profit Calculator
Enter revenue and cost of goods sold (COGS) to get gross profit and gross margin.
How to use this calculator
- 1Enter total revenue for the period.
- 2Enter your cost of goods sold (COGS) — the direct cost of what you sold.
- 3See gross profit and gross margin instantly.
How the Gross Profit Calculator works
Gross profit is what remains after you subtract the direct cost of producing what you sold — materials, direct labour, and wholesale goods — from your revenue. It is the money left to cover overheads like rent, marketing and admin, and to leave a profit, which makes it the foundation of a sustainable business.
Gross margin expresses the same figure as a percentage of revenue, which makes it easy to compare periods or products. Watch it over time: a falling gross margin usually signals rising supplier costs or discounting that is quietly eating your profitability.
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Create an invoice freeFrequently asked questions
What is gross profit?
Gross profit is revenue minus the cost of goods sold (COGS). It shows what is left to cover overheads and profit before other expenses.
What counts as COGS?
The direct costs of producing what you sold — materials, direct labour, and (for resellers) the wholesale price of goods. It excludes rent, marketing, and admin.
Gross profit vs net profit?
Gross profit deducts only COGS. Net profit deducts all expenses (overheads, tax, interest). Use the net profit margin calculator for the full picture.
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