Scenario 1
Product business
$100,000 revenue, $60,000 COGS → $40,000 gross profit, 40% gross margin.
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Gross Profit Calculator
Know your gross profit before operating costs eat into your margin.
Adjust your inputs
Results update instantly as you type or drag.
1 – 1,000,000,000
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0 – 1,000,000,000
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Quick insights
Gross margin
40%
COGS ratio
60%
Quick answer
What is gross profit?
Gross Profit = Revenue − Cost of Goods Sold (COGS). Gross Margin = Gross Profit ÷ Revenue × 100.
How it works
From inputs to result in four steps
A quick walkthrough of what this calculator does behind the scenes.
- 1
Enter your total revenue for the period.
- 2
Enter your cost of goods sold (COGS).
- 3
See gross profit and gross margin percentage.
Formula
The math behind the number
No black box — here's exactly how the result is computed.
Formula
Gross Profit = Revenue − COGS
Gross Margin = Gross Profit ÷ Revenue × 100
COGS Ratio = COGS ÷ Revenue × 100Examples
Real-world scenarios
See how the numbers play out for typical use cases.
Scenario 2
SaaS business
$200,000 revenue, $20,000 COGS → $180,000 gross profit, 90% gross margin (software has high margins).
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