Summary
Calculate gross profit and gross margin before operating expenses.
Calculation details
Use cost of goods sold from the same period as revenue.
Formula
Gross profit = revenue - cost of goods sold; gross margin = gross profit / revenue.
Worked example
Worked example
$80,000 gross profit is a 40% gross margin.
How it works
Enter revenue and COGS for the same period. Gross margin stops before operating expenses, interest, and tax.
Frequently asked questions
What does the Gross Margin Calculator calculate?
Use cost of goods sold from the same period as revenue.
Should I use this result for financial reporting?
Use it as an estimate and verify reporting, accounting, tax, and legal treatment with qualified professionals.