Gross Profit Calculator
Calculate gross profit, margin, and markup from revenue and costs.
Gross profit details
This calculator auto-updates when values change.
This calculator is for general business information only and is not financial, tax, accounting, or legal advice.
Results
Results update automatically.
Gross profit
£18,000.00
Revenue of £50,000.00 minus COGS of £32,000.00 gives gross profit of £18,000.00.
Visual breakdown
About This Gross Profit Calculator
This gross profit calculator calculates gross profit from revenue and cost of goods sold. It is useful for measuring product-level profitability before operating expenses such as rent, salaries, software, marketing, and admin costs.
Gross profit is one of the clearest early signals of business health. If gross profit is weak, the business may struggle to cover fixed costs no matter how carefully overheads are managed.
Gross Profit Example
If monthly revenue is GBP 25,000 and cost of goods sold is GBP 11,000, gross profit is GBP 14,000. The gross margin is 56%, meaning 56p of every GBP 1 of revenue remains before operating expenses.
If supplier costs rise to GBP 14,000 and prices stay the same, gross profit falls to GBP 11,000. That lower gross profit leaves less money for payroll, rent, tax, debt repayment, and reinvestment.
How to Use Gross Profit in Decisions
Track gross profit by product, service, channel, or customer type. A business may have strong total revenue while certain products quietly reduce margin.
Use gross profit before launching discounts or promotions. More sales are only helpful if the extra volume produces enough gross profit to justify the lower price.
How to Use This Calculator
- 1
Enter your figures
Add the relevant revenue, cost, customer, or pricing values.
- 2
Review the automatic results
The calculator updates immediately using the example values and any changes you make.
- 3
Compare the breakdown
Use the result cards and visual breakdown to understand the main drivers.
- 4
Adjust assumptions
Change inputs to test scenarios and targets.
Frequently Asked Questions
Does this calculator use live business data?v
No. It uses the values you enter and calculates results instantly in your browser.
Can I use this for forecasting?v
Yes, for quick scenario planning, but forecasts should be checked against real accounting data.
Does this include tax?v
No. It does not automatically include tax unless you enter tax or related costs as part of the inputs.
Is this financial advice?v
No. It is a general information tool for planning and estimation.