Subtract the direct cost of goods from revenue to find gross profit and margin.
Subtract the direct cost of goods from revenue to find gross profit and margin.
Enter values above and click Calculate — results will appear here with the formula explained.
Gross profit isolates the economics of making and selling before any overhead enters the picture. COGS includes materials, direct labor and manufacturing — costs that exist because a sale happened — while rent, marketing and admin wait for the operating expense line.
Tracking gross margin over time catches silent problems early: supplier creep, discounting drift and production inefficiency all show up here first, well before net income visibly suffers.
Advertisement
AdSense ready — add NEXT_PUBLIC_GOOGLE_ADSENSE_PUBLISHER_ID
Gross profit isolates the economics of making and selling before any overhead enters the picture. COGS includes materials, direct labor and manufacturing — costs that exist because a sale happened — while rent, marketing and admin wait for the operating expense line. Formula: Gross profit = Revenue − COGS; Gross margin = Gross profit ÷ Revenue
Gross Profit Calculator: Subtract the direct cost of goods from revenue to find gross profit and margin. Formula: Gross profit = Revenue − COGS. Example: Revenue of $480,000 against $290,000 COGS leaves $190,000 gross profit — a 39.
Subtract the direct cost of goods from revenue to find gross profit and margin. Formula: Gross profit = Revenue − COGS; Gross margin = Gross profit ÷ Revenue
| Field | What to enter |
|---|---|
| Total revenue ($) | e.g. 480000 |
| Cost of goods sold ($) | e.g. 290000 |
All fields use the exact formulas shown below — results include step-by-step breakdowns you can verify by hand.
Gross profit isolates the economics of making and selling before any overhead enters the picture. COGS includes materials, direct labor and manufacturing — costs that exist because a sale happened — while rent, marketing and admin wait for the operating expense line.
Tracking gross margin over time catches silent problems early: supplier creep, discounting drift and production inefficiency all show up here first, well before net income visibly suffers.
Advertisement
AdSense ready — add NEXT_PUBLIC_GOOGLE_ADSENSE_PUBLISHER_ID
Revenue of $480,000 against $290,000 COGS leaves $190,000 gross profit — a 39.6% gross margin, meaning roughly 40 cents of each sales dollar survives direct costs.
Advertisement
AdSense ready — add NEXT_PUBLIC_GOOGLE_ADSENSE_PUBLISHER_ID