Gross Profit Calculator
Calculate gross profit and gross profit margin from revenue and cost of goods sold (COGS).
Enter revenue and COGS to calculate gross profit.
Gross Profit Formulas
Gross Profit = Revenue − COGS
Gross Margin = (Gross Profit / Revenue) × 100%
Gross Margin = (Gross Profit / Revenue) × 100%
Example: Revenue: $100,000, COGS: $60,000.
Gross Profit = $100,000 − $60,000 = $40,000
Gross Margin = (40,000 / 100,000) × 100% = 40%
Gross Profit = $100,000 − $60,000 = $40,000
Gross Margin = (40,000 / 100,000) × 100% = 40%
FAQ
What is included in COGS?
COGS includes direct costs of production: raw materials, direct labor, and manufacturing overhead. It excludes selling, administrative, and other indirect expenses.
What is a good gross margin?
This varies by industry. Software: 70–90%, Retail: 25–50%, Manufacturing: 20–40%, Restaurants: 55–65%.
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Last updated: 2026-08-08