Free Gross Profit Calculator
Calculate gross profit instantly using revenue and cost of goods sold (COGS) with our free financial calculator.
When to use this calculator
Gross profit is revenue minus direct cost of goods sold — the first profitability gate on every P&L. Merchandising and finance leads track it weekly on hero SKUs and monthly on the total business. Recalculate when supplier invoices, freight surcharges, or mix shift materially.
Methodology and inputs
Gross profit = net sales − COGS; gross margin % = gross profit ÷ net sales. COGS should match inventory relief method and include inbound freight if capitalized in your standard cost.
Worked example
A specialty coffee roaster ships $127,000 in May; green bean, packaging, and production labor COGS $71,120. Gross profit $55,880 — 44.0% margin. A 6-point green coffee spike would compress margin to ~38% if shelf prices hold.
How to interpret the result
Stable revenue with falling gross margin often signals input inflation or promo depth — not a SG&A problem yet. Segment gross profit by channel before blaming 'the market.'
Reviewed by ZBI Tools · Practical finance and operations calculators for SMB teams.
Further reading
For a deeper walkthrough of the concepts behind this tool, see our guide: Read the full analysis guide.
Related hub: Browse all calculators · Analyzers & calculators home · About Zen Box Infinity
Practical questions
Include warehouse labor in COGS?
Only pick/pack directly tied to fulfillment if your policy capitalizes it in COGS — stay consistent.
Returns and gross profit?
Reduce revenue and restore COGS on resellable returns; write off scrap separately.
Services business COGS?
Direct contractor or delivery costs count as COGS — exclude sales and admin.
How it works
Gross Profit = Revenue − Cost of Goods Sold (COGS)
FAQ
What is gross profit?
Revenue minus the direct cost of producing or purchasing the goods sold.
How do you calculate gross profit?
Subtract COGS from revenue. COGS includes direct materials and labor.
What is the difference between gross profit and gross margin?
Gross profit is the amount in currency; gross margin is that amount as a percentage of revenue.