📊 Business
Gross Profit Calculator
Gross profit measures how efficiently a company produces its goods. Gross margin is the percentage of revenue that exceeds COGS. Understanding the difference between margin and markup is critical for pricing.
IM MET
How to Use This Tool
- Enter total revenue.
- Enter cost of goods sold.
- Click Calculate to see gross profit, margin, and markup.
The Formula
Gross Profit = Revenue - COGS. Gross Margin = Gross Profit / Revenue x 100. Markup = Gross Profit / COGS x 100.
Why It Matters
Your e-commerce store sells handmade candles at $25 each. Materials cost $8, packaging $2, shipping $5. Your gross profit per candle is $10 (40% margin). This calculator shows how volume changes affect your bottom line.
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