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Gross profit calculator

Enter revenue and cost of goods sold to see your gross profit and gross margin update live.

Inputs

Results update live as you type.

Gross profit
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Enter values to calculate.

Gross margin
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Profit
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Formulas: gross profit = revenue - COGS. Gross margin = gross profit / revenue x 100.
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What gross profit tells you

Gross profit is what remains after subtracting the direct cost of what you sold (COGS) from revenue. It shows whether your pricing covers production before rent, salaries and marketing. A falling gross profit on steady sales usually means costs are creeping up.

Gross margin benchmarks

Gross margin is gross profit as a share of revenue. Retail often runs 20 to 40 percent, restaurants 60 to 70 percent on food, and software can exceed 80 percent. Compare against businesses like yours, not a universal target.

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Gross Profit Calc FAQs

How do you calculate gross profit?
Subtract cost of goods sold from revenue. If you sell $10,000 of goods that cost $6,000 to make or buy, gross profit is $4,000.
What is the gross profit formula?
Gross profit = revenue - COGS. Gross margin = (gross profit / revenue) x 100. So $4,000 profit on $10,000 revenue is a 40% gross margin.
What is the difference between gross profit and net profit?
Gross profit subtracts only direct costs (COGS). Net profit subtracts everything, including rent, salaries, marketing, interest and taxes. Use the net profit calculator for the full picture.
What counts as COGS?
COGS is the direct cost of the goods you sold: materials, wholesale purchase cost, direct labor and packaging. It does not include rent, admin salaries or advertising.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.
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