Where do calculations run?

This tool runs in your browser for quick estimates. Use consistent units and verify critical figures independently.

Vendora

Small business calculator

Gross Margin Calculator

Find gross profit and gross margin on revenue: enter revenue and cost of goods sold for the same period. Gross margin is gross profit as a percent of revenue.

Inputs

Use one currency. Revenue and COGS must cover the same reporting period.

Revenue Sales and other revenue for the period.

Cost of goods sold (COGS) Direct costs tied to what you sold in the period.

Gross profit Calculated after you click Calculate.

Results

Gross profit = revenue − COGS. Gross margin (percent) = gross profit ÷ revenue × 100 when revenue is greater than zero.

Gross margin —

Gross profit —

Example

Revenue is $100,000 and COGS is $45,000. Gross profit is $55,000. Gross margin is $55,000 ÷ $100,000 × 100 = 55%.

How it works

Gross profit = revenue − cost of goods sold. Gross margin (percent of revenue) = gross profit ÷ revenue × 100. If revenue is zero, margin is not shown. Negative gross profit yields a negative gross margin percentage.