Gross Profit Margin Calculator
Calculate gross profit margin percentage from revenue and cost of goods sold.
For general financial estimates only.
Examples
- $20,000 revenue, $12,000 COGS ⇒ 40%
- $8,000 revenue, $4,000 COGS ⇒ 50%
- $1,000 revenue, $800 COGS ⇒ 20%
FAQ
What is gross profit margin?
It's the percentage of revenue retained after accounting for the cost of goods sold.
Can margin exceed 100%?
No, the maximum margin is below 100% because COGS cannot be negative.
Why use revenue instead of net sales?
Gross margin focuses on revenue before other expenses.
Additional Information
No additional information available.