Business2026/27
Gross Profit Calculator
Calculate your gross profit, gross profit margin, and markup percentage from revenue and cost of goods sold.
Calculate Gross Profit
Enter your revenue and cost of goods sold
Total sales or turnover
Direct costs of producing goods/services
Your Results
Gross Profit
£40,000
Gross Margin
40.0%
Markup
66.7%
Revenue£100,000
Cost of Goods Sold-£60,000
Gross Profit£40,000
Understanding Gross Profit
What is Gross Profit?
Gross profit is the profit a company makes after deducting the costs directly associated with making and selling its products, or the costs of providing its services. It's calculated as: Gross Profit = Revenue - Cost of Goods Sold (COGS)
Gross Profit Margin vs Markup
- Gross Profit Margin: Gross profit as a percentage of revenue - shows what percentage of each pound of revenue is profit
- Markup: Gross profit as a percentage of COGS - shows how much you've marked up your costs
What's Included in COGS?
- Raw materials and components
- Direct labour costs
- Manufacturing supplies
- Freight and shipping (inbound)
- Direct factory overheads
Typical Gross Profit Margins by Industry
- Retail: 20-50%
- Manufacturing: 25-35%
- Software/SaaS: 70-90%
- Professional Services: 50-70%
- Restaurants: 60-70%