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Gross Profit Margin from Revenue and Cost of Goods Sold Calculator

Gross margin = (Revenue − COGS) / Revenue × 100.

Compute gross profit margin: (Revenue − COGS) / Revenue × 100 %. Indicates how much of each dollar of sales is left after paying for the direct costs of production. High-margin software businesses exceed 70 %; retailers often run 25–40 %; grocery chains < 25 %.

Priya Venkatesan By Priya Venkatesan
Published Last reviewed 1 min read

Inputs

$ M
$ M

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

GM = (Revenue − COGS) / Revenue × 100.

In depth

Compute gross profit margin: (Revenue − COGS) / Revenue × 100 %. Indicates how much of each dollar of sales is left after paying for the direct costs of production. High-margin software businesses exceed 70 %; retailers often run 25–40 %; grocery chains < 25 %.