Gross Profit Calculator
Calculate gross profit, gross margin and markup from revenue and cost of goods sold.
Method and limitations · Report an error
Method
How it works
The gross profit formula subtracts cost of goods sold from revenue. Gross profit percentage, usually called gross margin, divides that result by revenue and multiplies by 100.
The calculator also shows COGS as a share of revenue and markup on cost. Operating expenses, tax and financing costs are outside this gross-profit calculation.
Common questions
Frequently asked questions
What is the gross profit formula?
Gross profit equals revenue minus cost of goods sold.
How do I calculate gross profit percentage?
Divide gross profit by revenue and multiply by 100. This percentage is commonly called gross margin.
Is gross profit the same as net profit?
No. Gross profit deducts cost of goods sold only; net profit normally includes additional operating and other expenses.
Why are gross margin and markup different?
Gross margin divides profit by revenue, while markup divides profit by cost.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.