Business calculator
Gross Profit Calculator
Calculate gross profit, gross margin, and operating profit from revenue and costs.
Formula
Gross profit
Gross profit = revenue - COGS; gross margin = gross profit / revenue
100,000 revenue and 60,000 COGS gives 40% gross margin.
FAQs
Is gross profit the same as operating profit?+
No. Operating profit subtracts operating expenses after gross profit.
Can margin be negative?+
Yes. If COGS exceeds revenue, gross margin is negative.
How does the Gross Profit Calculator calculate the result?+
It uses the Gross profit: Gross profit = revenue - COGS; gross margin = gross profit / revenue. 100,000 revenue and 60,000 COGS gives 40% gross margin.
What information do I need to use the Gross Profit Calculator?+
Calculate gross profit, gross margin, and operating profit from revenue and costs.
How accurate is the Gross Profit Calculator?+
Gross Profit Calculator applies the formula and assumptions shown on this page. Results may be rounded for readability, so verify changing rates, thresholds, medical guidance, or legal rules with the cited source or a qualified professional.
What should I check before using the Gross Profit Calculator result?+
Check that the units, dates, rates, and assumptions match your situation. Change one input at a time to understand which values have the largest effect on the result.
Business guide
How to use the Gross Profit Calculator
Calculate gross profit, gross margin, and operating profit from revenue and costs. The page also explains the gross profit and shows a practical example: 100,000 revenue and 60,000 COGS gives 40% gross margin.
- 1
Enter your details
Enter revenue and costs, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the gross profit: Gross profit = revenue - COGS; gross margin = gross profit / revenue.
- 3
Compare scenarios
Change one or more inputs to see how they affect the gross Profit Calculator result before you use the estimate.
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