Calculate gross profit, profit per unit, gross margin %, and markup from your selling price, unit cost, and units sold — or from revenue and COGS.
Start with a typical product, then adjust the price, cost, and units to match yours.
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Gross profit is what's left from sales after subtracting the cost of goods sold (COGS) — the direct cost of making or buying what you sold. It's a dollar amount: Gross Profit = Revenue − COGS. This calculator works two ways: from unit economics (your selling price, cost per unit, and units sold) or from total revenue and COGS. It also shows your gross margin and markup percentages and breaks down exactly how much of each revenue dollar is profit versus cost, so you can price products and judge profitability at a glance.
Gross profit measures profitability after direct production costs but before operating expenses, interest, and taxes. It tells you how efficiently you turn materials and direct labor into sellable value. Gross profit differs from net profit, which subtracts every expense (rent, salaries, marketing, taxes). It also differs from gross margin: gross profit is a dollar figure, while gross margin expresses that profit as a percentage of revenue.
Gross Profit Formula
Set or test a selling price by seeing the gross profit and margin it produces at your unit cost.
Etsy, Shopify, and Amazon sellers checking per-item gross profit after product and landed cost.
Menu engineering — compare gross profit per dish across the covers you serve.
Gross profit on bulk orders at negotiated unit costs and volumes.
Compute gross profit from total revenue and COGS for a profit-and-loss statement.
Practice the gross profit, margin, and markup formulas with worked, step-by-step calculations.
Enter a price, cost, and volume and instantly see the gross profit and margin it produces — so you can set prices that actually make money.
See exactly how much each sale earns before overhead, which is the number e-commerce and retail sellers care about most.
The calculator shows gross margin (% of price) and markup (% of cost) together, so you never confuse the two when pricing.
Apply an optional per-unit discount and watch gross profit, margin, and per-unit profit update in real time.
The breakdown chart splits every revenue dollar into COGS and gross profit, making your cost structure obvious at a glance.
Switch between unit economics and revenue-and-COGS totals, or load a real-world preset, to compare pricing ideas in seconds.
Gross profit is revenue minus the cost of goods sold (COGS): the money left after the direct cost of producing or buying what you sold, but before operating expenses, interest, and taxes. For example, selling 45 units at $33 that cost $25 each gives revenue of $1,485, COGS of $1,125, and gross profit of $360.
Gross profit is a dollar amount (Revenue − COGS). Gross margin is that profit expressed as a percentage of revenue (Gross Profit ÷ Revenue × 100). A $360 gross profit on $1,485 of revenue is a 24.2% gross margin. This calculator shows both.
Gross profit subtracts only COGS from revenue. Net profit (the bottom line) subtracts every other expense too — operating costs, salaries, rent, marketing, interest, and taxes. Gross profit is always higher than net profit; the gap is your operating and overhead costs.
Gross profit per unit is the selling price per unit minus the cost per unit. If you sell an item for $33 that costs $25, your gross profit per unit is $8. Multiply by units sold to get total gross profit. In unit mode this calculator does both for you.
COGS includes the direct costs of producing or acquiring your product: raw materials, direct labor, and inbound freight. It excludes indirect costs like marketing, office salaries, rent, and distribution — those are operating expenses that affect net profit, not gross profit.
It varies widely by industry — software and services often exceed 70%, retail and grocery can be 20–40%, and manufacturing sits in between. Compare against your own industry rather than a universal number. For industry benchmarks and reverse calculations, use our gross margin calculator.
Direct labor tied to making the product is part of COGS, so it reduces gross profit. Indirect overhead — administrative salaries, rent, utilities, and marketing — is not in COGS; it is deducted later to reach operating and net profit.
Raise your selling price, lower your unit cost (better sourcing or production), sell more units, reduce discounts, or shift your mix toward higher-margin products. Use this calculator to test each lever and see the impact on gross profit and margin instantly.