Gross Profit Calculator
Find gross profit and gross margin from revenue and cost.
Profit before overhead
Gross profit is the first line of profitability: what remains after the direct cost of making or buying what you sold, before rent, salaries, and taxes. It shows how much room a product leaves.
Revenue of 120,000 with 75,000 in cost of goods gives a gross profit of 45,000 and a gross margin of 37.5%. A healthy gross margin is what funds everything else the business needs.
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Frequently Asked Questions
What is gross profit?
Revenue minus the cost of goods sold — what is left before operating expenses, taxes, and overhead.
What is gross margin?
Gross profit as a percentage of revenue, showing how much of each sale is retained before other costs.
How is it different from net profit?
Net profit subtracts all expenses; gross profit subtracts only the direct cost of producing what you sold.
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