Accurately calculate your gross margin to understand your business's core profitability. Our intuitive Gross Margin Calculator helps you quickly determine the percentage of revenue remaining after subtracting the cost of goods sold (COGS), a crucial metric for financial analysis and strategic decision-making and profitability analysis.
Formula:
Gross Margin (%) = ((Revenue - Cost of Goods Sold) / Revenue) × 100%
Gross Profit = Revenue - Cost of Goods Sold
Where:
Revenue: The total sales amount received for goods or services over a period.
Cost of Goods Sold (COGS): The direct costs attributable to the production of the goods or services sold by a company.