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Gross Profit Calculator with Revenue, COGS, Margin, Markup and Pricing Scenarios

Calculate gross profit, gross margin, markup, gross profit per unit, COGS ratio, and price sensitivity. Built for product pricing, wholesale checks, retail planning, and inventory-led businesses.

Gross profit amount
Gross margin %
Markup %
Sensitivity table
What this calculator covers
Core output
Gross Profit
Business metric
Margin %
Revenue minus cost of goods sold
Unit-level and total business view
Price and cost sensitivity analysis
Margin, markup and COGS ratio side by side
Currency
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Gross Profit Calculator
Mode 1: Total Revenue and Total COGS
$
Total sales revenue before deducting cost of goods sold.
$
Direct product cost only. Excludes overhead and operating expenses.
qty
Used to calculate revenue and gross profit per unit.
Mode 2: Unit Price and Unit Cost
$
Sales price charged per unit.
$
Direct unit cost, including landed product cost where relevant.
qty
Quantity multiplied by unit economics for total gross profit.
Mode 3: Required Price for Target Gross Margin
$
Base unit cost before pricing.
%
Gross margin target as a percentage of selling price.
qty
Used to project total revenue and gross profit at the target price.
Method note
Gross profit equals revenue minus cost of goods sold. Gross margin measures profit as a share of revenue, while markup measures profit relative to cost. They are not the same percentage.
Gross Profit
โ€”
revenue minus cost of goods sold
Gross Profit
โ€”
total gross profit amount
Gross Margin
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profit as a % of revenue
Markup
โ€”
profit as a % of cost
Gross Profit Per Unit
โ€”
unit-level gross profit
Revenue Per Unit
โ€”
average price per unit
COGS Ratio
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COGS as a % of revenue
Total Revenue
โ€”
gross sales value
Revenue Side
Total revenueโ€”
Revenue per unitโ€”
Units soldโ€”
Gross profitโ€”
Cost Side
Total COGSโ€”
COGS per unitโ€”
Gross marginโ€”
Markupโ€”
Full Gross Profit Breakdown
Total revenueโ€”
Total COGSโ€”
Gross profitโ€”
Gross margin %โ€”
Markup %โ€”
Revenue per unitโ€”
COGS per unitโ€”
Gross profit per unitโ€”
COGS ratio %โ€”
Units soldโ€”
Price and Cost Sensitivity Table
Scenario Revenue / Unit COGS / Unit Gross Profit / Unit Gross Margin Total Gross Profit
Revenue vs COGS vs Gross Profit
Revenue
COGS
Gross Profit
Gross profit is not net profit. Operating expenses such as salaries, rent, ads, software, logistics overhead, and taxes are not deducted here. This calculator isolates the product-level profit layer only.
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๐Ÿ“Œ What this covers

Gross profit amount
Gross margin %
Markup %
Profit per unit
Revenue and COGS split
Pricing sensitivity
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Profit Margin Calculatorโ†’ Markup vs Margin Calculatorโ†’ Break-even Calculatorโ†’ Unit Price Calculatorโ†’ Discount Calculatorโ†’
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Gross Profit vs Net Profitโ†’ Markup vs Margin Explainedโ†’ What Counts as COGSโ†’

How gross profit works

Gross profit isolates the first layer of business profitability. It measures how much money remains after subtracting cost of goods sold from revenue. That makes it one of the core pricing and merchandising metrics for product-led businesses.

Gross profit is not the same as net profit. It sits higher up the income statement and does not include overhead, payroll, rent, software, paid acquisition, or tax.

The core formulas

Gross Profit = Revenue โˆ’ Cost of Goods Sold
Gross Margin % = Gross Profit รท Revenue ร— 100
Markup % = Gross Profit รท Cost of Goods Sold ร— 100
Gross Profit Per Unit = Selling Price Per Unit โˆ’ Cost Per Unit
Gross margin uses revenue as the denominator. Markup uses cost as the denominator. They are different metrics and should not be mixed.

Why gross margin matters

A business can grow revenue quickly and still weaken economically if COGS rises too fast. That is why gross margin is one of the best early signals of pricing strength, supply efficiency, and discount pressure.

Metric What It Shows Why It Matters
Gross profitAbsolute profit before overheadShows how much money product sales generate after direct cost
Gross margin %Profit as a share of revenueUseful for pricing efficiency and category comparison
Markup %Profit as a share of costUseful for cost-based pricing decisions
COGS ratio %Cost as a share of revenueShows how much of each sales dollar is consumed by direct cost

Gross margin vs markup

These are not interchangeable. A 40% markup does not mean a 40% margin. Margin is always lower than markup when both are derived from the same price-cost pair.

That distinction matters because businesses often set price from a markup rule but report profitability through gross margin.

Frequently Asked Questions

What counts as COGS?+
COGS usually includes direct product cost, landed cost, factory cost, packaging tied to the item, and freight-in where relevant. It does not usually include rent, general salaries, admin software, or broad marketing expenses. Use the result as a business performance estimate, not as accounting advice. Real margins and returns can change when refunds, discounts, taxes, shipping, payment fees, labour, rent, inventory write-offs, and overhead allocation are included. The calculator is best used to compare scenarios and understand the relationship between revenue, cost, and profit.
Is gross profit the same as operating profit?+
No. Gross profit is calculated before operating expenses. Operating profit sits lower and subtracts overhead such as payroll, rent, software, and marketing from gross profit. Use the result as a business performance estimate, not as accounting advice. Real margins and returns can change when refunds, discounts, taxes, shipping, payment fees, labour, rent, inventory write-offs, and overhead allocation are included. The calculator is best used to compare scenarios and understand the relationship between revenue, cost, and profit.
Why is margin different from markup?+
Because they use different denominators. Margin divides profit by revenue, while markup divides profit by cost. That means the same product can show one margin number and a different markup number. Use the result as a business performance estimate, not as accounting advice. Real margins and returns can change when refunds, discounts, taxes, shipping, payment fees, labour, rent, inventory write-offs, and overhead allocation are included. The calculator is best used to compare scenarios and understand the relationship between revenue, cost, and profit.
What is a good gross margin?+
It depends on the industry, channel mix, and operating model. Wholesale businesses often run lower margins than premium consumer brands, while digital products can run much higher margins than physical goods. Use the result as a business performance estimate, not as accounting advice. Real margins and returns can change when refunds, discounts, taxes, shipping, payment fees, labour, rent, inventory write-offs, and overhead allocation are included. The calculator is best used to compare scenarios and understand the relationship between revenue, cost, and profit.
Why does a small price change affect gross profit so much?+
Because the full price increase usually drops straight into gross profit if unit cost does not change. That makes pricing one of the strongest levers in product economics. Use the result as a business performance estimate, not as accounting advice. Real margins and returns can change when refunds, discounts, taxes, shipping, payment fees, labour, rent, inventory write-offs, and overhead allocation are included. The calculator is best used to compare scenarios and understand the relationship between revenue, cost, and profit.