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Gross Profit Calculator
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
- Enter Total Revenue and any Discounts & Allowances (%).
- Enter Cost of Goods Sold (COGS) and Operating Expenses.
- 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
Gross profit only subtracts direct production costs. Net profit also subtracts operating expenses, interest and taxes.
Gross profit only subtracts direct costs. Net profit also subtracts overheads, interest and tax.