Calculate gross profit and gross margin from revenue and cost of goods sold, with a target-revenue mode.
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Gross profit
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Gross margin
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Gross profit excludes operating expenses, interest, and taxes. Values are rounded for display — full precision is used internally. Results are estimates for planning and review, not financial advice.
The gross profit calculator works with the two numbers at the top of every income statement: revenue and cost of goods sold (COGS). It returns gross profit (revenue minus COGS), gross margin as a percentage, and the same margin as a ratio — plus a reverse mode that derives the revenue needed to hit a target gross profit at a chosen margin. Gross profit is deliberately distinct from net profit: it excludes rent, salaries, marketing, and every other operating cost, so it measures how efficiently a product or service line converts sales into contribution. The calculator uses the standard convention that margin is gross profit divided by revenue, expressed as a percentage; full decimal precision is kept internally and rounding applies only to display. Everything runs locally in your browser — your revenue and cost figures never leave your device and are never logged. Use this calculator when you are reviewing product-line performance, preparing a budget, or comparing gross margins across departments or periods.
A product line brings in $100,000 of revenue and its cost of goods sold is $64,000. Gross profit is 100,000 − 64,000 = $36,000. The gross margin is 36,000 / 100,000 = 36%. If the business wants $50,000 of gross profit at a 36% margin, it needs revenue of about $138,889.
| Input | Value |
|---|---|
| revenue | 100000.00 |
| cost | 64000.00 |
| Result | Gross profit $36,000.00 · gross margin 36.0% |
gross profit = revenue − cost of goods sold
| Symbol | Meaning |
|---|---|
revenue | total sales value |
cost of goods sold | direct product or service costs only |
gross margin % = gross profit / revenue × 100
| Symbol | Meaning |
|---|---|
gross profit | revenue minus cost of goods sold |
revenue | total sales value |
revenue = target profit / (margin% / 100)
| Symbol | Meaning |
|---|---|
target profit | desired gross profit |
margin% | planned gross margin percentage |
Last reviewed August 4, 2026 · Version 1.0.0 · Toolivaro does not guarantee external content.
COGS includes the direct costs of producing or acquiring what you sell: materials, product cost, and direct labor. Rent, salaries of non-production staff, marketing, and shipping to customers are operating expenses, not COGS — including them produces a net-profit figure instead.
There is no universal target. High-margin industries like software and services often exceed 70%, while groceries and commodity retail sit in the 20–30% range. Compare your margin against your own history and published industry benchmarks rather than a fixed number.
Yes — when cost of goods sold exceeds revenue. The calculator reports a negative gross profit and a negative margin, which signals a pricing or cost problem before other expenses are even considered.
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