Gross Profit Margin Calculator

Calculate the percentage of revenue above cost of goods sold.

Revenue ($) Cost of Goods Sold ($)

What is Gross Profit Margin Calculator?

Gross profit margin tells you how much of your sales revenue remains after subtracting the direct cost of producing or purchasing your products. It is the foundational health metric for any product-based business and the starting point for all profitability analysis.

How to Use This Tool

1. Enter your total revenue for the period. 2. Input your total cost of goods sold (COGS) — the direct cost to produce or source your products. 3. Click calculate to see your gross margin percentage.

💡 Pro Tip: If your gross margin is shrinking quarter over quarter, your supplier costs are rising faster than your prices. This calculator helps you spot that trend early — before it becomes a cash flow crisis. Run it monthly!