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Gross Profit Calculator

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Cost of goods sold

What is Gross Profit Calculator?

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Gross profit is revenue minus the direct costs of producing goods or services (COGS). It represents the efficiency of production and pricing strategy. Gross profit margin = (Revenue − COGS) / Revenue × 100%.

Calkulon makes complex calculations simple — built for students and everyday problem-solvers.

How to Gross Profit Calculator

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1Identify total revenue for the period
2Calculate COGS: direct materials, direct labour, and direct overheads
3Gross profit = Revenue − COGS
4Gross margin % = Gross profit / Revenue × 100

Worked Examples

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Example 1

Given:Revenue £500k · COGS £300k

Výsledok:£200k gross profit (40% margin)

Typical for mid-market retail

Gross margin benchmarks

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Industry	Typical gross margin
Software (SaaS)	70–85%
Professional services	50–70%
Retail (general)	30–45%
Manufacturing	25–40%
Grocery	20–30%
Construction	15–25%

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Pro Tip

Track gross margin trend over time, not just the absolute number. A declining gross margin often signals pricing pressure or rising input costs before they become a crisis.

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Did you know?

Apple's gross margin on iPhone is estimated at 50–55%, significantly higher than most hardware companies. This is driven by premium pricing and tightly controlled manufacturing.

References

›Gross profit — Investopedia

Len na informačné účely. Tento nástroj nepredstavuje finančné poradenstvo. Pred investičnými alebo finančnými rozhodnutiami sa poraďte s kvalifikovaným finančným poradcom.

Deep Dive

Read the full guide on how to use this calculator effectively

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Formula-verified for precision

Reviewed October 2026

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