How is this different from net profit?

Gross profit only subtracts COGS; net profit further subtracts operating expenses, interest, and taxes, giving a more complete profitability picture.

Gross Profit & Margin Calculator

Calculate gross profit and gross margin percentage from total revenue and cost of goods sold.

Inputs

Results

Gross Profit: $290,000.00
Gross Margin: 58%

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Formula

Gross Profit = Revenue − COGS, Gross Margin = Gross Profit / Revenue × 100

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Profitability Metrics Beyond the Bottom Line

Gross profit, return on assets, operating margin, and the fixed-to-variable cost ratio — four different lenses on how efficiently a business turns revenue into profit.

Frequently Asked Questions

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