CalculateMeasure

Business

Gross Profit Calculator

Calculate gross profit and gross margin from sales revenue and cost of goods sold.

Get embed code

Calculator guide

How to use the Gross Profit Calculator

Calculate gross profit and gross margin from sales revenue and cost of goods sold. Enter the requested values and select Calculate. The result and supporting values are produced locally in your browser.

Formula

Gross Profit = Revenue − Cost of Goods Sold

Worked example

With $250,000 in revenue and $150,000 in cost of goods sold, gross profit is $100,000 and gross margin is 40%.

What to keep in mind

  • Gross profit excludes operating expenses, interest, and taxes.
  • Use consistent accounting periods for revenue and cost of goods sold.

Methodology

This calculator uses deterministic arithmetic and performs the calculation locally in your browser. Verify assumptions, units, and source values for your specific use case.

Review standard: Level B · Industry formula. How calculator reviews work.

Frequently asked questions

What does this calculator calculate?

Calculate gross profit and gross margin from sales revenue and cost of goods sold.

How is the result calculated?

Gross Profit = Revenue − Cost of Goods Sold.

Can I use the result for an important decision?

Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.

Does CalculateMeasure store the values I enter?

The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.