Gross Profit Calculator
Subtract itemised cost of goods sold from net revenue to see gross profit, margin and markup.
Gross Profit Calculator
Cost of Goods Sold (COGS) items
Gross Profit
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Net Revenue
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Total COGS
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Gross Margin
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Markup on COGS
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COGS as % of Revenue
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Net price / unit
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COGS / unit
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Profit / unit
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Revenue, COGS and gross profit
COGS Breakdown
| Cost item | Amount (₹) | % of net revenue | % of COGS |
|---|
Assumptions & method
- Net revenue = gross sales − returns, refunds and discounts. Gross profit = net revenue − total COGS.
- Gross margin = gross profit ÷ net revenue. Markup = gross profit ÷ COGS. A 50% margin equals a 100% markup, so the two should not be mixed up when setting prices.
- COGS here is the sum of the cost items you list. Typically that means the direct costs of making or buying what you sold: materials or purchased goods, direct labour, freight-in, packaging and production overhead directly tied to output.
- Accounting definitions differ by business and jurisdiction. Service firms may count delivery staff, retailers count purchase cost and inbound freight, and some firms include depreciation of production equipment. Selling, marketing and administrative costs are usually excluded. Use the categories your accountant uses.
- Per-unit figures divide net revenue, COGS and gross profit by units sold, and assume all units were sold at the same average price and cost.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is gross profit?
Gross profit is the first measure of whether a business model works. If the direct cost of what you sell is higher than what customers pay, no amount of cost-cutting elsewhere will fix it. Listing COGS as separate lines makes it clear what drives your costs, and the share-of-COGS column shows which item to attack first. The margin tells you how much of each rupee of sales is left to cover overheads, and the markup tells you how far above cost you are pricing, which is the number to use when you set prices from cost.