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Gross Profit Calculator

Gross profit calculator. Enter revenue and cost of goods sold (COGS) to calculate gross profit and gross margin percentage. Includes the formula and examples.

Direct costs to produce/deliver what you sold (materials, manufacturing, packaging, shipping, etc.).

How to Calculate Gross Profit

If you’re searching for “how to calculate gross profit”, the formula is simply revenue minus cost of goods sold (COGS).

Gross Profit Formula

Gross profit = Revenue − COGS

Gross Margin Formula

Gross margin % = (Gross profit ÷ Revenue) × 100

Example

If revenue is $10,000 and COGS is $6,500: gross profit = $10,000 − $6,500 = $3,500. Gross margin = $3,500 ÷ $10,000 = 35%.

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