What you provide
What you provide
- Net revenue: Sales after returns and discounts for the selected period.
- Cost of goods sold: Direct product or service cost recognized against that revenue.
BUSINESS / DIRECT COST
Gross Margin Calculator
Calculate gross profit and gross margin from net revenue and cost of goods sold using matching accounting periods and scope.
- 01 Calculated in this tab
- 02 Values stay in this browser tab
- 03 Use boundary
Use boundary
Calculation path
Cost of goods sold is subtracted from revenue to obtain gross profit, which is then divided by revenue for gross margin.
Calculation path
Gross margin = gross profit / revenue x 100.
What you receive
What you receive
- Gross margin percentage
- Gross profit amount
- Entered revenue and direct-cost comparison
Use boundary
Choose the maximum decimal places shown. This does not increase source accuracy.
Accounting policy determines which labor, freight, hosting, depreciation, and overhead costs belong in cost of goods sold.
This calculator is an educational scenario model, not investment, tax, accounting, or valuation advice. Confirm definitions, timing, and decisions with source documents and a qualified professional.