Gross Margin Calculator
BusinessCalculate gross profit and gross margin percentage from revenue and cost of goods sold (COGS).
Gross Profit
Revenue minus the direct cost of producing your goods or services.
Gross Margin
40.0%
Gross profit as a percentage of revenue.
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Odeh Ahwal0people find this calculator helpful
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Helpful
Saved
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Frequently Asked Questions
What is the difference between gross margin and gross profit?
Gross profit is a dollar amount (revenue minus COGS). Gross margin expresses that same relationship as a percentage of revenue, making it easier to compare profitability across companies of different sizes.
What is a good gross margin?
It varies widely by industry — software and SaaS companies often see 70-90% gross margins, while retail and manufacturing typically run 20-50%, since they carry higher direct production costs.
What counts as COGS?
COGS includes only the direct costs of producing what you sell — materials, direct labor, and manufacturing overhead. It excludes indirect costs like marketing, rent, or admin salaries.
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