Gross Profit Calculator
Work out gross profit and gross margin from revenue and cost of goods sold.
Gross profit
£3,500.00
- Gross margin
- 35%
v1.0 · Reviewed September 2026
How this is worked out
Gross profit is revenue − cost of goods sold. Gross margin expresses that as a percentage of revenue.
Worked example
- Revenue £10,000.00
- Cost of goods sold £6,500.00
10,000 − 6,500 = 3,500, and 3,500 ÷ 10,000 = 35%
£3,500.00 gross profit at a 35% margin
Assumptions and limits
- Cost of goods sold covers direct costs only. Rent, salaries, marketing and other overheads sit below the gross profit line.
- Figures should both exclude VAT, or both include it, so the percentage is meaningful.