Calculators / Quick tool
Calculate gross profit, gross margin and cost ratio from revenue and cost of goods sold.
Calculate gross profit, gross margin and cost ratio from revenue and cost of goods sold.
revenue=125000
cost=76000Gross profit: 49000
Formula: gross profit = revenue − cost of goods sold
Substitution: 125000 − 76000 = 49000
Gross margin: 39.2%
Formula: gross margin = gross profit ÷ revenue × 100
Substitution: 49000 ÷ 125000 × 100 = 39.2%
Cost ratio: 60.8%Paste content, enter parameters or choose the files you need in “Revenue and cost of goods sold”.
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Review the result under “Gross margin result”, then copy or download it after checking the output.
Result guide
Enter revenue and cost of goods sold from the same period. The calculator subtracts cost to find gross profit, then divides profit and cost by revenue to report gross margin and cost ratio.
Gross profit = revenue − cost of goods sold. Gross margin % = gross profit ÷ revenue × 100. Cost ratio % = cost of goods sold ÷ revenue × 100. Revenue must be greater than zero.
With revenue of 125,000 and cost of goods sold of 76,000, gross profit is 49,000. Gross margin is 49,000 ÷ 125,000 = 39.2%, while the cost ratio is 60.8%.
Use figures from the same period and currency, and use the accounting definition of cost of goods sold that applies to the business. This arithmetic result does not include operating expenses, taxes, returns or cash timing unless those amounts are already reflected in the inputs.
Gross margin divides gross profit by revenue. Markup divides the same profit by cost. They use different denominators and are not interchangeable.
That depends on the reporting definition you use. Apply one consistent policy across periods and compare this result with the business accounting records.
Yes. If cost of goods sold is greater than revenue, the calculator reports a negative gross profit and gross margin.
Ecommerce & pricing decision chain
Verify unit economics, set acquisition limits, test the offer, then check collection and inventory. Each stage continues into another real calculation.
Selling 100 units at $100 creates $10,000 revenue. With $3,000 of product COGS, gross profit is $7,000 and gross margin is 70%. Fulfillment, payment fees, ads and returns still belong in the later contribution decisions.
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