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Gross profit calculator

Compute gross profit and gross margin from revenue and cost of goods sold.

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Enter Revenue, Cost of goods sold and the Gross profit calculator works out Gross profit, Gross margin straight away. For instance, with Revenue = $200,000.00 and Cost of goods sold = $120,000.00 it returns Gross profit = $80,000.00 and Gross margin = 40%.

How to use it

  1. Enter your values: Revenue, Cost of goods sold.
  2. Read the result instantly: Gross profit, Gross margin.

Frequently asked questions

How does the Gross profit calculator work?

It takes Revenue and Cost of goods sold and derives Gross profit and Gross margin from them. The calculation is live as you type, so the result updates on every change.

Which values does the calculator ask for?

2 values: Revenue ($) and Cost of goods sold ($). Nothing else is required — no account, no file upload.

What does a typical calculation look like?

With Revenue = $200,000.00 and Cost of goods sold = $120,000.00, the calculator returns Gross profit = $80,000.00 and Gross margin = 40%. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

How much does the result change with different inputs?

It moves a lot. Using Revenue = $400,000.00 and Cost of goods sold = $240,000.00 instead, Gross profit goes from $80,000.00 to $160,000.00 — which is why it is worth testing a few scenarios rather than trusting a single figure.

What does it give for smaller values?

Scaled down to Revenue = $100,000.00 and Cost of goods sold = $60,000.00, Gross profit comes out at $40,000.00. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Setting a price that survives contact with reality: covering costs, hitting a target margin, and checking what the marketplace and payment fees leave behind.

What is the most common mistake?

Confusing margin with markup. A 50% markup is a 33% margin, and pricing as if they were the same undercharges by a third on every unit sold.

What is the difference between the Gross profit calculator and the E-commerce profit calculator?

This one returns Gross profit and Gross margin; the E-commerce profit calculator returns Profit per sale and Profit margin. That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Lemonade stand profit calculator is the closest one after this: Run the numbers on a lemonade stand — a first, friendly lesson in unit economics. From cups sold, price, the cost of ingredients per cup and your fixed costs, it works out revenue, total cost, profit, the margin and how many cups you must sell just to break even.

What else is worth having open alongside it?

Net profit margin calculator and Profit calculator — they come up in the same task often enough to be worth a second tab.

Further reading

All guides →
ExplainerThe Gross Margin Is the Ceiling on Every Other Margin200,000 of revenue less 120,000 of cost of sales is 80,000 of gross profit and a 40 % margin. Everything the business spends after that comes out of the 80,000 — and out of nowhere else.ComparisonGross Margin vs Markup: The Confusion That Costs Real MoneyMargin is measured on the selling price, markup on the cost. They describe the same profit from opposite ends, they are never equal, and reading one as the other quietly removes a large slice of your gross profit.ExplainerOperating Margin Is the Only One That Compares Two Companies60,000 of operating income on 200,000 of revenue is 30 %. It sits between a gross margin that depends on accounting policy and a net margin that depends on debt and tax.ExplainerThe Most Quoted Margin Is the Least Comparable One50,000 of net income on 200,000 of revenue is 25 %. Two identical businesses can show 22.5 % and 15 % on the same operations, with the entire gap coming from how they are financed.ExplainerWhat Is Food Cost Percentage? Portion Drift Beats Supplier PricesA $3.30 plate on a $12.00 menu is 27.5 percent. An extra 30 grams of chicken and 6 percent waste push it to 31.65 percent — while a 5 percent supplier increase moves it only 1.38 points.ExplainerContribution Margin, and the Break-Even That Actually MattersGross margin nets off cost of goods sold; contribution margin nets off only the costs that vary with the unit. The gap decides your break-even, your operating leverage, and how much extra volume a price cut really needs.