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Gross Profit Calculator

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

How it works Report a problem

Gross Profit Pro

Advanced revenue analysis & profitability forecasting

Revenue Streams
$
%
Cost Analysis
$
$
Estimated Gross Profit
$0.00
0.00% Margin
Net Revenue $0.00
Total COGS $0.00
Operating Margin 0.00%
Net Operating Income $0.00
Profitability Score
0

Good standing

Strategy Insight
Increasing your price by 5% could improve your margin by 3.2%.

About the Gross Profit Calculator

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

How to use the Gross Profit Calculator

  1. Enter Total Revenue and any Discounts & Allowances (%).
  2. Enter Cost of Goods Sold (COGS) and Operating Expenses.
  3. Press Calculate Results. You can also export a PDF or save the result to history.

Formula and method

Gross profit = Net revenue − COGS, Gross margin = Gross profit ÷ Net revenue × 100, Operating profit = Gross profit − Operating expenses.

Worked example

Revenue of $100,000 with COGS of $60,000 gives gross profit of $40,000, a 40% gross margin.

When to use the Gross Profit Calculator

  • Seeing how much a business keeps after the direct cost of its products.
  • Comparing products or periods.
  • Reviewing your pricing.

Common mistakes to avoid

  • Including overheads in cost of goods sold. Gross profit only subtracts direct costs.

Tips

  • Compare gross margin with others in your industry.
  • Include all direct costs in COGS for an honest figure.

Frequently asked questions

What is the difference between gross and net profit?
Gross profit only subtracts direct production costs. Net profit also subtracts operating expenses, interest and taxes.
What is the difference between gross and net profit?
Gross profit only subtracts direct costs. Net profit also subtracts overheads, interest and tax.