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Use our free Gross Profit Calculator to get instant results in seconds.
Running a business, even a small one, means keeping an eye on your money. One of the most important numbers you should know is your gross profit. This tells you how much money you keep after paying for the cost of the products you sell.
Many people try to calculate this by hand. It can be confusing and easy to get wrong. That’s where this calculator helps. It gives you quick and clear answers without stress.
Whether you sell online, run a shop, or just want to understand business numbers better, this tool makes things simple.
Enter your values above and get your result instantly.
You only need two numbers. That’s it. No long forms. No complicated steps. Just type, click, and see your gross profit right away.
How to Use This Gross Profit Calculator
Using the Gross Profit Calculator is very easy. Just follow these steps:
- Enter your Total Revenue
This is the money you made from selling your products. - Enter your Cost of Goods Sold (COGS)
This is how much you spent to make or buy the products you sold. - Click the Calculate button
You will instantly see:
- Your Gross Profit
- Your Gross Profit Margin (in percentage)
That’s all. No math needed on your side.
How the Calculation Works (Simple Explanation)
Gross profit shows how much money is left after covering the direct cost of your products.
Formula:
Gross Profit = Total Revenue – Cost of Goods Sold
Gross Profit Margin tells you how much profit you make for every dollar of sales.
Gross Profit Margin = (Gross Profit ÷ Revenue) × 100
Easy Example
Let’s say:
- You sold products worth $1,000
- It cost you $600 to buy or make those products
Gross Profit = 1,000 – 600 = $400
Now for the margin:
Gross Profit Margin = (400 ÷ 1,000) × 100 = 40%
This means you keep 40 cents as gross profit from every dollar you sell.
Why People Use This Gross Profit Calculator
Gross profit is useful for many people, not just big companies.
Small business owners
They use it to see if they are making enough money on their products.
Online sellers
It helps them price items correctly and avoid selling at a loss.
Students
Business and accounting students use it to learn how profit works in real life.
Freelancers and creators
Anyone selling physical products can check if their costs are too high.
Families running home businesses
It helps them understand if their hard work is truly paying off.
When you know your gross profit, you can make smarter decisions. You can change prices, lower costs, or improve your products.
Frequently Asked Questions (FAQs)
What is gross profit in simple words?
Gross profit is the money left after you subtract the cost of making or buying your products from your sales.
Is gross profit the same as net profit?
No. Gross profit only subtracts product costs. Net profit also subtracts rent, salaries, bills, and other expenses.
What is a good gross profit margin?
It depends on the business. Some industries have 20%, others 60% or more. Higher usually means better control over costs.
Can I use this calculator for services?
Yes, if you know the direct cost of providing the service. Just treat that as your cost of goods sold.
Why is my gross profit high, but I still have no money left?
Because other expenses like marketing, rent, or salaries are not included in gross profit, you need net profit to see the full picture.
Related Calculators You May Find Helpful
If you found this Gross Profit Calculator useful, you may also like tools such as the Net Profit Calculator, Profit Margin Calculator, Markup Calculator, Break-Even Calculator, Percentage Calculator, and Sales Tax Calculator. These tools work together to give you a full view of your business finances and help you plan better.
Helpful References
To learn more about gross profit and business costs, you can read simple guides from trusted sources like Investopedia and the U.S. Small Business Administration (SBA). They explain business basics in easy language and real examples.
Understanding your numbers gives you control. This calculator makes one of the most important numbers in business clear and fast. Try it now and see exactly how much your sales are really earning you.