Gross Profit Calculator
Calculate your gross profit and gross margin percentage based on revenue and cost of goods sold.
Fill in the fields above and click Calculate to see your results.
How to use
To evaluate your business's core profitability, start by entering your total Revenue (Total Sales) for a specific period. This represents all the money brought in from selling your goods or services before any expenses are deducted. Then, input your Cost of Goods Sold (COGS), which includes all direct costs tied to producing or delivering your product, such as raw materials and direct labor.
Be sure to exclude indirect expenses like marketing, rent, or administrative salaries, as these do not factor into gross profit. The calculator will subtract the COGS from your Revenue to display your Gross Profit in your chosen currency. This figure tells you exactly how much money is left over to cover your remaining operating expenses and eventually generate a net profit.
Simultaneously, the tool will output your Gross Margin Percentage. This percentage indicates how efficiently you are producing your goods and whether you have enough margin left over to cover your operating expenses and grow the business sustainably.
How it's calculated
Gross Profit
Profit before operating expenses
Gross Margin (%)
Percentage of revenue kept as profit
Examples
E-commerce store monthly
- Cost of Goods Sold (COGS):30,000,000
- Total Revenue:50,000,000
Result
- Gross Profit:40,000,000
- Gross Margin (%):40
If a retail store generates 100M VND in revenue and the wholesale cost of those products was 60M VND, the gross profit is 40M VND. This translates to a 40% gross margin, which is standard for retail and helps cover rent and salaries.
Manufacturing Plant Annual
- Cost of Goods Sold (COGS):450,000,000
- Total Revenue:1,000,000,000
Result
- Gross Profit:550,000,000
- Gross Margin (%):55
A local manufacturing plant generates 1 Billion VND in total revenue over the year, while raw materials and direct factory labor cost 450 Million VND. This leaves a healthy gross profit of 550 Million VND, meaning the business has a strong 55% gross margin to cover marketing and administration.
Industry Benchmarks
| Metric | Typical Range |
|---|---|
| Average for retail businesses is around 40-50% | 40 % |
Data source: CalcVault Industry Data
Frequently Asked Questions
What is Gross Profit?
What expenses are not included in Gross Profit?
Why is gross margin an important metric?
How can I improve my gross margin?
CalcVault Editorial Team
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