Gross Profit Calculator

Calculate gross profit (revenue minus cost of goods sold) and gross margin percentage for a product, period or business.

$
$
Gross profit
$100,000.00
Gross margin
40.00 %
COGS as % of revenue
60.00 %
Equivalent markup on cost
66.67 %

Estimate generated with SortedSums: https://sortedsums.com/gross-profit-calculator/. For informational purposes only; verify before relying on it.

Estimate only. This tool is for informational and educational purposes. Results depend on your inputs and simplifying assumptions, and are not a substitute for professional engineering, design or financial advice. Always verify with a qualified professional and applicable codes before purchasing, building or making decisions.

How it’s calculated

Gross profit is what is left from sales after paying for the goods that were sold. Gross margin expresses it as a share of revenue.

Gross profit = Net sales − Cost of goods sold Gross margin % = Gross profit ÷ Net sales × 100

Example: net sales of 250,000 and COGS of 150,000 give gross profit of 100,000 and a gross margin of 100,000 ÷ 250,000 = 40%. The same profit is a 100,000 ÷ 150,000 = 66.67% markup on cost.

Gross profit does not include operating expenses, interest or tax; use a net profit margin for the bottom line.

Frequently asked questions

Is gross profit the same as net profit?

No. Gross profit only subtracts the cost of goods sold. Net profit also subtracts operating expenses, interest and taxes.

What goes into cost of goods sold?

The cost of the inventory sold: purchase price or production cost, plus freight-in and direct costs of getting it ready to sell. Selling and admin costs are operating expenses instead.

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Sources

Formulas are taken from the free public references above. Results are provided “as is” for informational and educational purposes only. See our disclaimer.

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