Business

Gross Profit Calculator

Revenue minus cost of goods sold.

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ⓘ Live results

Results
Gross profit
$72,000.00
Gross margin
40%
Operating profit
$32,000.00
Operating margin
17.78%
Markup on cost
66.67%

Quick answer

Gross profit is revenue minus direct costs; the margin shows what share of each sale is left to cover overhead.

Gross profit = Revenue − COGS

How to use the Gross Profit Calculator

  1. 1Enter total revenue for the period.
  2. 2Enter cost of goods sold.
  3. 3Add operating expenses for the operating margin.

Worked example

Using the values the calculator loads with:

Inputs

  • Revenue180000 $
  • Cost of goods sold108000 $
  • Operating expenses40000 $

Results

  • Gross profit$72,000.00
  • Gross margin40%
  • Operating profit$32,000.00
  • Operating margin17.78%
  • Markup on cost66.67%

Frequently asked questions

What counts as COGS?

Direct materials, direct labour and freight-in — not rent or marketing.

Is margin the same as markup?

No: margin is profit over revenue, markup is profit over cost.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.