Gross profit focuses on direct costs first, before overhead, tax, or financing enters the picture.

Gross profit: $2,200.00
Gross margin: 44.0%
Cost ratio: 56.0%

Revenue
$5,000.00
Cost of goods sold
$2,800.00

Profit

Gross Profit Calculator

Use this when you already know total revenue and cost of goods sold and need a fast gross profit check.

This calculator helps sellers and freelancers see how much revenue remains after direct fulfillment cost before overhead and taxes enter the picture.

How to use this page

Start with your best current estimate, adjust the inputs until the result feels realistic, and use the related tools below when you want to pressure-test price, profit, or payout from another angle.

Calculate gross profit, gross margin, and cost ratio from revenue and cost of goods sold.

The calculator, examples, and shareable URL all stay aligned so you can test ideas quickly and revisit them later.

Worked examples

Start from a realistic scenario

Each example opens the same calculator with shareable URL state.

Monthly product revenue

A simple gross profit snapshot for one month of product sales.

$2,200.00gross profit

Load this example

Service delivery margin

A service team comparing revenue against direct delivery cost.

$8,200.00gross profit

Load this example

This page was reviewed for clarity and consistency.

FAQ

Quick answers

Short answers for the questions that usually come up first.

Is gross profit the same as net profit?

No. Gross profit subtracts direct cost of goods or delivery only, while net profit also reflects overhead, fees, and other operating costs.

What belongs in cost of goods sold?

Use direct costs tied to fulfilling the sale, such as materials, production, or delivery labor that scales with revenue.