Gross Profit Calculator

Enter your revenue and cost of goods sold. Instantly see gross profit $, gross margin %, and markup %. Free, no signup.

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📈 Gross Profit Calculator

Enter your revenue and cost of goods sold → get gross profit, margin %, and markup % instantly

Revenue (Selling Price)

Total sales / selling price

Cost of Goods Sold (COGS)

Direct cost to produce or buy

Your Results —

Gross Profit

—

Dollars earned

Gross Margin

—

% of revenue kept

Markup

—

% above cost

Margin0%

Revenue—

− Cost of Goods Sold—

= Gross Profit—

💡 —

What Is It

What Is Gross Profit?

Gross profit is the money left from your revenue after subtracting the direct cost of producing or purchasing what you sell (COGS). It does not include rent, salaries, marketing, or taxes — those come out later when calculating operating or net profit.

It's the first and most important line on your P&L. A healthy gross profit gives you the cushion to pay overhead and still have something left as net profit.

Gross Profit Formula

Gross Profit ($) = Revenue − COGS
Gross Margin (%) = (Revenue − COGS) ÷ Revenue × 100
Markup (%) = (Revenue − COGS) ÷ COGS × 100

Example: $10,000 revenue − $6,000 COGS = $4,000 gross profit
Margin = $4,000 ÷ $10,000 = 40% | Markup = $4,000 ÷ $6,000 = 66.7%

Benchmarks

What Is a Good Gross Margin?

Industry	Typical Gross Margin	Rating
SaaS / Software	70–85%	Excellent
Consulting / Services	70–90%	Excellent
Ecommerce (DTC)	40–60%	Good
Amazon FBA	30–50%	Good
Retail — Apparel	50–60%	Average
Retail — Electronics	20–35%	Thin
Restaurant	60–65%	Average
Grocery / Supermarket	25–35%	Very Thin
Construction	15–25%	Thin

FAQ

Frequently Asked Questions

What is the difference between gross profit and net profit?+

Gross profit = Revenue minus COGS only. Net profit subtracts everything else too — rent, salaries, utilities, marketing, interest, and tax. A business can have a high gross profit but low net profit if its overhead is large.

Is gross margin the same as gross profit?+

No. Gross profit is a dollar amount. Gross margin is the percentage. If your gross profit is $4,000 on $10,000 revenue, your gross margin is 40%. Both describe the same transaction, just in different units.

What is the difference between margin and markup?+

Margin divides profit by revenue. Markup divides profit by cost. They are always different percentages. A 66.7% markup on a $6,000 cost gives a $10,000 price — that's only 40% gross margin. Confusing them leads to systematic underpricing.

What counts as COGS?+

COGS (Cost of Goods Sold) includes only the direct costs tied to producing or purchasing what you sell: raw materials, manufacturing labour, packaging, and the wholesale cost of inventory. It does not include rent, salaries for admin staff, or marketing.

Can gross profit be negative?+

Yes. If COGS exceeds revenue — due to heavy discounting, spoilage, or incorrect pricing — gross profit goes negative. This is unsustainable and usually means your pricing model needs urgent correction.

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