Free Gross Profit Calculator
This gross profit calculator isolates what production itself earns, revenue minus the direct cost of goods sold, before overheads like rent and salaries. It is designed for retailers, manufacturers and resellers reviewing product lines and supplier terms.
How it works
Gross profit = revenue − cost of goods sold (materials, direct labour, wholesale stock). Gross margin = gross profit ÷ revenue × 100. Overheads are excluded, that is what distinguishes gross profit from net profit.
Example
| Revenue | COGS | Gross profit | Margin |
|---|---|---|---|
| R50,000 | R32,000 | R18,000 | 36% |
Frequently asked questions
How is gross profit calculated?
Subtract cost of goods sold from revenue. R50,000 revenue minus R32,000 COGS gives R18,000 gross profit.
Gross profit vs net profit?
Gross profit excludes overheads like rent and salaries; net profit deducts everything.
What counts as cost of goods sold?
Direct costs: stock, materials and direct labour. Exclude rent, marketing and admin.
Why is my gross margin falling?
Common causes are supplier price rises, discounting, or a shift toward lower-margin products, investigate before cutting costs blindly.
Is my data uploaded?
No. All calculations happen locally in your browser.
Related tools
- Profit Margin Calculator, the net-margin view.
- Markup Calculator, price the goods.
- Break-Even Calculator, cover the overheads too.