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Gross Margin Calculator

Finance
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Calculates the gross margin of a business, which is a key indicator of profitability.

More tools:Finance Calculators
How To Use

How to use this calculator

Start with your values, or try a preset.

Step 1

Enter Revenue and Cost of Goods Sold (COGS) in the units shown.

Step 2

Read Gross Profit and Gross Margin in the results panel. Results update as you change the inputs.

Step 3

Choose a preset to load an example, then adjust the values for your situation.

Worked Examples

Example calculations

See the inputs and their calculated results.

Example 1

Revenue: 100,000 $; Cost of Goods Sold (COGS): 60,000 $

Gross Profit: 40,000 $; Gross Margin: 40 %

Example 2

Revenue: 150,000 $; Cost of Goods Sold (COGS): 75,000 $

Gross Profit: 75,000 $; Gross Margin: 50 %

Example 3

Revenue: 200,000 $; Cost of Goods Sold (COGS): 100,000 $

Gross Profit: 100,000 $; Gross Margin: 50 %

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Important

Treat this output as a planning estimate and confirm rates, tax rules, and contract terms before making financial decisions.