Business and managerial accounting · Business metrics
Gross profit and margin
Calculate gross profit and gross margin from revenue and cost of goods sold.
Method and scope
Gross profit = revenue − cost of goods sold. Gross margin = gross profit ÷ revenue × 100%.
Show the basic relationship between sales revenue, cost of goods sold, and gross margin. Intended for Learners, General business use.
Inputs- Revenue for the period — 1
- Cost of goods sold — 1
SOURCE AND LIMITS
Assumptions: Revenue and cost of goods sold cover the same period and use the same currency. The user supplies the revenue and cost amounts.
Limitations: Revenue must be positive; negative gross profit is allowed and shown as a negative margin.
Method version 1.0.0 · Unit registry and result provenance are shown after calculation. This tool is limited to the documented scope.Explore related fields
See the other currently released formula calculators tagged for these research fields.