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.

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