Business calculator

Gross Profit Calculator

Calculate gross profit, gross margin, and operating profit from revenue and costs.

FormulaGross profit = revenue - COGS; gross margin = gross profit / revenue

Formula

Gross profit

Gross profit = revenue - COGS; gross margin = gross profit / revenue

100,000 revenue and 60,000 COGS gives 40% gross margin.

FAQ6 common questions for this calculator.

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?+

For the Gross Profit Calculator, 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?+

For the Gross Profit Calculator, enter revenue and costs. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.

How accurate is the Gross Profit Calculator?+

Gross Profit Calculator is accurate when the business inputs come from the same reporting period and definition. It applies the Gross profit. Platform attribution windows, refunds, taxes, or overhead allocation can change the interpretation.

What should I check before using the Gross Profit Calculator result?+

For the Gross Profit Calculator, check revenue and costs, measurement period, attribution window, revenue basis, costs, and rounding rules. Business metrics change meaning when inputs come from different systems or time ranges.

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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. 1

    Enter your details

    Enter revenue and costs, then complete any other fields shown in the calculator.

  2. 2

    Check the calculation

    Review the result alongside the gross profit: Gross profit = revenue - COGS; gross margin = gross profit / revenue.

  3. 3

    Compare scenarios

    Change one or more inputs to see how they affect the gross Profit Calculator result before you use the estimate.