Gross Profit Calculator

Gross Profit. Calculate gross profit and gross margin from revenue and cost of goods sold.

Formula reviewed September 1, 2026 · Runs locally in your browser

Net sales / revenue ($)Cost of goods sold ($)

Enter your numbers and calculate.

Worked example

$10,000 of net sales and $6,000 of COGS produces $4,000 gross profit and a 40% gross margin.

What to do with the result

Gross profit is useful, but ecommerce decisions often need contribution profit too because shipping, payment fees, fulfillment and advertising can sit outside COGS.

Frequently asked questions

What is gross profit?

Net sales remaining after cost of goods sold.

Is gross profit the same as net profit?

No. Operating expenses, fees, advertising, payroll, tax and other costs may still remain.