Gross Profit Calculator
Revenue minus cost of goods sold.
Calculate gross profit and gross margin from revenue and cost of goods sold. Free educational calculator with the math explained step by step.
What this tool does
Enter revenue and cost of goods sold. The tool shows gross profit and gross margin percentage.
Enter Values
Formula Used
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Calculations, display, or translation — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
100,000 revenue minus 60,000 COGS = 40,000 gross profit, 40% gross margin. Gross margin varies by industry: 20-40% manufacturing, 40-60% services, 70-90% software. Below your industry average flags pricing or cost issues; above suggests differentiation is working.
Quick example
With revenue of 100,000 and cost of goods sold of 60,000, the result is 40,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Revenue and Cost of Goods Sold. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
What's happening under the hood
Standard gross profit formula. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
What the score tells you
Headline financial numbers — income, savings, debt — each tell part of the story. This calculation stitches several together into a single read you can track over time. The value is in the direction, not the absolute number.
What this doesn't capture
The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.
Where to go next
This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the gross margin calculator, the gross profit margin calculator, and the cogs calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.
Gross profit produces a cash and margin figure based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Standard gross profit formula.
References
Frequently Asked Questions
What counts as COGS?
Gross margin benchmarks?
Difference from net profit?
Can margin improve?
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Calculate COGS from inventory plus gross profit, gross margin, and markup percentage. Enter opening inventory and purchases during period for an instant result.
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