Skip to main content
UK Utility Tools Search tools
All tools Dates & Time Postcodes & Places Business Salary & Tax Property
Business

Gross Profit Calculator

Calculate gross profit and gross margin from sales revenue and cost of goods or direct services.

Loading calculator…
HOW IT WORKS

How the Gross Profit Calculator works

1

Enter sales revenue

Add the sales income for the period you want to analyse.

2

Enter direct costs

Add cost of goods sold or other direct costs associated with that revenue.

3

See gross profit and margin

Revenue less direct costs gives gross profit, which can also be expressed as a percentage of revenue.

COMMON QUESTIONS

Frequently asked questions

What is gross profit?

Gross profit is sales revenue minus cost of goods sold or direct costs.

What is gross margin?

Gross margin is gross profit divided by sales revenue, expressed as a percentage.

Does gross profit include overheads?

No. General overheads, finance costs and tax are normally considered after gross profit.

Can gross profit be negative?

Yes. If direct costs are higher than revenue, gross profit and gross margin can be negative.

RELATED TOOLS

Try another useful calculator

Business Profit Margin Calculator Calculate profit, margin and markup from cost and selling price. Business Markup Calculator Calculate selling price, profit and margin from cost and markup percentage. Business Break-Even Calculator Estimate how many units must be sold to cover fixed and variable costs.