Gross Profit Calculator

The gross profit calculator helps you see how much money is left over from your sales once you have paid for the goods or services you sold. It takes two figures, your total revenue and your cost of goods sold (COGS), and returns both the gross profit in dollars and the gross margin as a percentage. Gross profit is simply revenue minus COGS, while gross margin expresses that profit as a share of revenue, so you can compare performance across periods or against other businesses no matter their size. Small business owners, retailers, manufacturers, cafe operators and freelancers all use this measure to check whether their pricing and supplier costs are leaving enough headroom to cover overheads such as rent, wages, marketing and tax. A healthy gross margin means there is room to invest and grow, while a thin one is a warning that costs are too high or prices too low. To get the most from this tool, make sure your COGS includes only the direct costs of producing or buying what you sold, such as materials, freight inwards and direct labour, and leave out fixed overheads, which belong further down the profit and loss statement. Track your gross margin every month rather than once a year so you spot drift early, and compare it against industry benchmarks for your sector here in New Zealand. If your margin is slipping, look at supplier pricing, waste, discounting and product mix before you assume you simply need to sell more. Used regularly, gross profit and margin give you a clear, fast read on the core profitability of what you sell.

Gross profit = revenue - COGS. Gross margin = gross profit / revenue. Estimate only, not financial or tax advice.