Finance Calculators

Gross Margin Calculator

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

Total revenue

Cost of goods sold (COGS)

Gross profit —

Gross margin —

About the Gross Margin Calculator

Gross margin is the most fundamental profitability metric — it shows what percentage of revenue remains after paying only the direct costs of producing goods or services, before any operating expenses, interest or taxes are considered.

Formula: Gross Profit = Revenue − COGS · Gross Margin = (Gross Profit ÷ Revenue) × 100

Gross margin is always higher than net profit margin or operating margin, since those subtract additional costs — comparing all three shows exactly where a business's money is going.