Gross Margin Calculator
Enter revenue and cost of goods sold to calculate gross profit and gross margin percentage.
Gross Margin Calculator
Calculate gross profit and gross margin percentage from revenue and cost of goods sold.
This calculator provides an estimate for general informational purposes only. It is not a substitute for professional financial, mechanical or engineering advice.
Gross margin shows how much of each revenue dollar remains after covering the direct cost of producing what was sold, before overhead and other expenses.
Example
- With the default values shown above, this calculator returns: Gross Profit ≈ USD 40,000.00; Gross Margin ≈ 40.00.
Frequently Asked Questions
What is the formula?
Gross Profit = Revenue − COGS. Gross Margin % = Gross Profit ÷ Revenue × 100.
What counts as COGS?
Cost of Goods Sold includes the direct costs of producing what you sold — materials and direct labor — but not overhead like rent, marketing or admin salaries.