Gross Margin Calculator
Determine gross margin percentage from revenue and cost of goods sold. Enter the values and press Calculate.
CalcSimpler Examples
- Revenue $1000, COGS $600 ⇒ 40%
- Revenue $250, COGS $200 ⇒ 20%
- Revenue $5000, COGS $3500 ⇒ 30%
FAQ
What is gross margin?
Gross margin is the percentage of revenue left after subtracting cost of goods sold.
Can gross margin be negative?
Yes, if COGS exceeds revenue.
Does it include other expenses?
No, only direct cost of goods sold is considered.
Additional Information
- Gross profit equals revenue minus cost of goods sold.
- Gross margin helps compare profitability across products or time periods.
- It excludes operating expenses, taxes, and interest costs.
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