Gross Profit Calculator

Gross profit is what remains from revenue after the direct cost of what was sold. It funds operations and shows whether the core business itself makes money. At its core the tool evaluates Gross profit = revenue − COGS | Margin = gross profit ÷ revenue × 100. Revenue of 85,000 with 51,000 of direct costs leaves gross profit of 34,000 — a 40% margin; every 100 of sales contributes 40 to rent, salaries and profit. Adjust any field and the outputs recompute immediately, so you can test as many scenarios as you like in the units you prefer.

1. 1

   Step 1

   Gather the numbers the Gross Profit Calculator needs and type them in.

2. 2

   Step 2

   The engine evaluates Gross profit = revenue − COGS | Margin = gross profit ÷ revenue × 100 instantly as you type.

3. 3

   Step 3

   Check the output and its unit before using it.

4. 4

   Step 4

   Repeat with different inputs to test alternatives.

• Putting operating costs in COGS

• Mixing periods

• Ignoring shrinkage