Gross Profit & Gross Margin Calculator
Find out how much of your sales revenue turns into profit once product costs are deducted.
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What does the Gross Profit Calculator do?
Gross profit is your revenue minus the direct cost of the products you sold. Gross margin is that profit as a percentage of revenue, and markup is the profit as a percentage of cost. Enter your revenue and cost of goods and this calculator returns all three, plus the per-unit figures.
1. How to use this gross profit calculator?
- 1Enter your revenue and the cost of the goods you sold to earn it.
- 2Add the number of units sold to see per-unit figures.
- 3Read your gross profit, gross margin and markup.
What each input means
- Revenue
- total sales
- Cost of goods sold
- product cost for those sales
- Units sold
- units
2. How is the gross profit calculator calculated?
- Gross profit = revenue − cost of goods sold
- Gross margin = gross profit ÷ revenue
- Markup = gross profit ÷ cost of goods sold
- Per unit = totals ÷ units sold
With $10,000 of revenue and $4,200 of cost of goods, gross profit is $5,800. The gross margin is 58% and the markup is 138.1%. Over 200 units that is $50 revenue, $21 cost and $29 gross profit per unit.
3. Who should use this tool?
- Owners setting or checking their product markup.
- Stores comparing the margin of different products.
- Anyone confused about the difference between margin and markup.
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Calculate final priceGross Profit Calculator: frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by the selling price. Markup is profit divided by the cost. The same sale gives a smaller margin than markup, so a 100% markup is only a 50% margin.
What is a good gross margin for ecommerce?
It varies a lot by product. Many stores aim for at least 40 to 50% so there is room to pay for ads, shipping, fees and overheads.
What counts as cost of goods sold?
The direct cost of the products you sold, such as supplier or manufacturing cost. Many stores also include inbound freight and packaging.
Is gross profit the same as net profit?
No. Gross profit ignores ads, shipping to customers, fees and overheads. Use the Net Profit Calculator for the full picture.
Services that move these numbers
Product Sourcing
AliExpress and private-agent sourcing, supplier vetting, and connection through DSers, Spocket or Importify.
Learn more →Winning Product Research
Products found and validated through Facebook, Google and TikTok ad research and spy tools.
Learn more →Sales Reporting
Daily or weekly sales reports and financial tracking, so you always know how your store is performing.
Learn more →Want an expert to look at your real numbers?
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