Gross Margin Calculator
Calculate gross profit and gross margin from revenue and cost of goods sold.
Profitability
Gross Margin Calculator
Calculate gross profit and gross margin from revenue and cost of goods sold.
Decision intelligence
Turn the result into a decision
What this means
Focus on direction, sensitivity and cash impact rather than treating a single output as a forecast guarantee.
Stress-test it
Review the Base result, then test a downside case before making a material commitment. Pay particular attention to cash impact and assumptions you can control.
Next step
Continue through the Grow journey with a related planning tool below.
How to use this calculator
Calculate gross profit and gross margin from revenue and cost of goods sold.
Formula & methodology
Gross profit = Revenue − Cost of goods sold. Gross margin % = Gross profit ÷ Revenue × 100.
Worked example / approach
For $100,000 revenue and $60,000 COGS, gross profit is $40,000 and gross margin is 40%.
How to interpret the result
Focus on direction, sensitivity and cash impact rather than treating a single output as a forecast guarantee.
Limitations
Results depend on the accuracy of your inputs and assumptions. Regulatory, tax and market-specific outcomes can require additional information not captured by a planning calculator.