Gross Profit Calculator
Gross profit in money, per sale and per period.
Gross profit
$6,000
60.0% gross margin
How the Gross Profit Calculator works
Gross profit is the money left after paying for the goods, before anything else. It is the pool every other cost draws from, which makes it the simplest early test of whether a product is worth selling at all.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the gross profit formula?
Revenue minus cost of goods sold. On £10,000 of sales with £4,000 of goods, gross profit is £6,000. Expressed as a percentage of revenue it becomes gross margin, 60% in this case.
What is the difference between gross profit and net profit?
Gross profit subtracts only the cost of goods. Net profit subtracts operating expenses, interest and tax as well. The gap between them is every cost of running the business rather than making the product.
Does gross profit include shipping?
Inbound freight to get stock to you is normally part of cost of goods, so it reduces gross profit. Outbound shipping to customers is more often treated as a selling cost below the line — but consistency matters more than which choice you make.
Can gross profit be high while the business loses money?
Easily, and it is the most common shape of failure in ecommerce. Strong gross profit consumed by advertising, software, salaries and rent produces a healthy-looking top half of the P&L and a negative bottom line.