Customer Lifetime Value Calculator
Lifetime value per customer.
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Gross Profit Calculator
Get gross profit, margin and markup from revenue and cost.
Gross profit
—
Revenue − COGS.
| Gross margin | — |
|---|---|
| Markup | — |
| Revenue | — |
| COGS | — |
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How the Gross Profit Calculator Works
Gross profit is revenue minus the cost of goods sold — what’s left to cover overhead and profit after paying for the product itself. Gross margin expresses that as a percentage of revenue (gross profit ÷ revenue), while markup expresses it as a percentage of cost (gross profit ÷ cost). $10,000 in sales at $6,000 cost is $4,000 gross profit — a 40% margin, or 66.7% markup.
Margin and markup are easy to confuse: margin is always the smaller number because it’s a share of the larger revenue figure.
gross profit = revenue − cost of goods sold
Frequently Asked Questions
How do you calculate gross profit?
Subtract the cost of goods sold from revenue. $10,000 − $6,000 = $4,000.
What is the difference between margin and markup?
Margin is gross profit as a percent of revenue; markup is gross profit as a percent of cost. Markup is always the larger figure.
What is a good gross margin?
It varies by industry — software often runs 70%+, while retail and grocery can be under 30%.
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