Gross Margin Calculator

Calculate gross profit and gross margin percentage using your revenue and cost of goods sold (COGS).

How This Gross Margin Calculator Works

Gross margin is a key profitability metric that shows how much profit a business makes after deducting the cost of producing its goods. A higher gross margin means better efficiency and pricing power.

The calculator uses the standard formulas:
Gross Profit = Revenue − COGS
Gross Margin % = (Gross Profit ÷ Revenue) × 100

All calculations happen instantly in your browser and nothing is saved or shared.

Frequently Asked Questions

What is gross margin?

Gross margin shows the percentage of revenue left after subtracting the direct cost of producing goods.

How do you calculate gross margin?

Gross margin is calculated as (Revenue minus COGS) divided by Revenue, then multiplied by 100.

Is gross margin the same as profit?

No. Gross margin measures profit after production costs, while net profit includes all expenses.

Does this calculator save my data?

No. Everything is calculated locally in your browser.