Gross Profit Calculator
Calculate gross profit — revenue minus the direct cost of producing goods sold.
Calculate
Enter your values below.
Result
Gross profit
0
Gross margin
0
Formula used
Gross profit = Revenue − COGS
Example: $50,000 revenue, $30,000 COGS → gross profit = $20,000.
How to use this calculator
- Enter Revenue, Cost of goods sold (COGS).
- Press Calculate to see your result instantly.
FAQ
Frequently asked questions
What is COGS?
Cost of Goods Sold — the direct costs of producing the goods a business sells, like materials and direct labor.
How is gross profit different from net profit?
Gross profit only subtracts COGS; net profit also subtracts operating expenses, taxes, and interest.
What does gross margin tell you?
The percentage of revenue retained after covering direct production costs, before other business expenses.
Should overhead costs be included in COGS?
Typically no — COGS covers direct production costs only, not overhead like rent or administrative salaries.