Finance CalculatorsBusiness FinanceFree Tool
Gross Margin Calculator
Calculate your gross profit and gross margin percentage from revenue and cost of goods sold (COGS).
How to Use Gross Margin Calculator
- 1Enter your revenue
- 2Enter your COGS
- 3Click Calculate to see your gross profit and gross margin percentage
Frequently Asked Questions
Gross Profit = Revenue minus COGS; Gross Margin = Gross Profit divided by Revenue times 100.
Gross Margin only subtracts COGS from revenue. Operating Margin goes further and subtracts operating expenses too (using EBIT directly as an input), and Net Margin subtracts everything down to net income/PAT. Each is a progressively narrower slice of profitability.
Whatever direct costs of producing your goods or services you enter - this calculator doesn't break COGS into components, it simply uses the total figure you provide.
It varies enormously by industry - software and services businesses often report gross margins well above 70-80%, while retail and manufacturing are typically much lower due to higher direct costs. Compare within your own sector rather than to a universal number.
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