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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 →
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.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.ComparisonFIFO vs LIFO: What Actually Changes, and What Does NotFIFO and LIFO are assumptions about which cost you attach to a sale, not about which box leaves the warehouse. Worked through identical purchases and sales, they move cost of sales, inventory, profit and tax — but operating cash before tax is identical to the cent.ExplainerHow Etsy Fees Work: The 6.5 Percent Is About a Third of the BillThe famous transaction fee is one of five layers. On a $40 item with $6 shipping, Etsy's order fees come to $4.62 — and $11.52 if the sale came through Offsite Ads.ComparisonStripe vs PayPal Fees: What Each One Actually TakesOn a $100 domestic card sale the gap is $0.78. On the same sale from abroad with a currency conversion it is $2.78. The headline rate is the part that matters least.