Gross Profit Margin Calculator

The gross profit margin calculator shows how much of every sales dollar you keep after the direct cost of making or buying what you sell. You enter your total revenue and your cost of goods sold, often called COGS, and the tool returns your gross profit in dollars and your gross margin as a percentage. Cost of goods sold covers the direct costs tied to your sales, such as materials, stock you buy in for resale, and the labour that goes straight into the product or service. It does not include overheads like rent, marketing, or admin salaries, which belong further down the profit and loss statement. Gross margin is one of the clearest early signals of whether your pricing and production costs are working together. A New Zealand retailer, manufacturer, cafe owner, or tradesperson can use it to check that prices cover direct costs with enough left over to fund the rest of the business. To get a reliable figure, make sure revenue and COGS cover the same period and that COGS captures every direct cost, including freight and packaging. Track the percentage month by month rather than focusing on a single result, because a steady or rising margin usually matters more than one good month. If your margin is slipping, look at supplier pricing, stock wastage, discounting, and whether your selling prices have kept pace with costs. Comparing your gross margin against others in your industry helps you judge whether it is healthy. All figures are in New Zealand dollars and are an estimate to guide decisions, not a substitute for tailored accounting advice from your adviser.

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