How To Calculate Gross Profit?

Gross Profit = Revenue − Cost of Goods Sold (COGS)

Revenue = total sales (net of returns, allowances, and discounts)

COGS = direct costs of producing or purchasing goods sold (materials, direct labor, and manufacturing/production overhead)

If you have gross margin %: Gross Profit = Revenue × Gross Margin %

If you have gross profit %: Gross Profit % = (Gross Profit ÷ Revenue) × 100

If you have COGS and gross profit: Revenue = Gross Profit + COGS

If you have revenue and gross profit: COGS = Revenue − Gross Profit

Suggested for You

Trending Today