Business calculator
Editor
Estimate how much revenue remains after direct costs or cost of goods sold. Keep the workflow focused on sales, COGS, and retained gross profit without drifting into operating-expense or bottom-line accounting.
Keep the main revenue and COGS inputs visible immediately so the calculator stays quick to use. Advanced sales adjustments and inventory-style COGS stay tucked away until you need them.
Mode
Use total inputs when you already know sales and COGS for the period. Use per-unit mode when you want the calculator to build revenue and direct cost from units sold.
Sales / revenue
Start with revenue or sales for the period you want to analyze. Gross profit is calculated after direct costs, not after operating overhead.
Gross profit is revenue minus the direct cost of producing or delivering what you sell. Operating expenses, interest, and taxes are intentionally not part of this page.
Cost of goods sold
Keep a direct COGS total here by default, or switch to the inventory-style builder in Advanced when that matches your bookkeeping workflow better.
Open this only when you need sales adjustments or inventory-style COGS inputs.
Results
Gross profit
$72,000.00
Gross margin
40%
Status
Positive gross profit
Revenue
$180,000.00
COGS
$108,000.00
Gross profit
$72,000.00
Gross margin
40%
COGS %
60%
Retained revenue %
40%
Net revenue
$180,000.00
COGS
$108,000.00
Gross profit
$72,000.00
| Measure | Amount | Share of net revenue |
|---|---|---|
| Gross sales | $185,000.00 | Before sales adjustments |
| Returns, discounts, and allowances | -$5,000.00 | Reduction from gross sales |
| Net revenue | $180,000.00 | 100% |
| COGS | $108,000.00 | 60% |
| Gross profit | +$72,000.00 | 40% |
Gross profit reflects revenue minus direct costs or COGS only. Operating expenses, interest, and taxes are not included here, so net profit will usually be lower. Use this page to understand whether direct costs are leaving enough room before broader overhead enters the picture.
How it works
Start with either total revenue and COGS or switch to per-unit inputs. The calculator then estimates net revenue, COGS, gross profit, gross margin, and how much of the sales amount is still being retained after direct costs.
Gross profit is the amount left after subtracting the direct cost of producing or delivering what was sold. It answers a focused question: how much money is left after direct costs, before broader overhead and bottom-line expenses are applied?
Gross profit margin is gross profit divided by net revenue, multiplied by 100. It shows what percentage of the revenue base remains after direct costs are covered. A higher gross margin usually means more room to absorb overhead and still remain profitable.
Gross profit sits higher on the income statement than net profit. Gross profit removes only direct costs. Net profit is lower because it also reflects operating expenses, interest, taxes, and other items. That difference is why this page stays intentionally narrower than the net profit calculator.
COGS often determines whether revenue is actually useful or just expensive to earn. If direct costs climb too close to revenue, gross profit shrinks and the business has less room left for payroll, rent, software, taxes, and growth.
Total mode is best when you already know the period revenue and direct cost totals. Per-unit mode is better when you want to build the same answer from units sold, selling price, and cost per unit. The optional inventory-style builder is there for cases where COGS is assembled from beginning inventory, purchases, production costs, and ending inventory.
Gross profit is revenue minus the direct cost of goods sold. It does not include operating expenses, interest, taxes, or other lower-line accounting items.
Gross profit is calculated as net revenue minus COGS. If you use total inputs, revenue can first be reduced by returns, discounts, or allowances. In per-unit mode, revenue is units sold times selling price per unit and COGS is units sold times cost per unit.
Gross profit margin is gross profit divided by net revenue, multiplied by 100. It shows the percentage of revenue still being retained after direct costs are covered.
Gross profit removes only direct costs. Net profit is lower on the income statement because it also includes operating expenses, interest, taxes, and other business costs or income items.
COGS usually includes direct costs tied to what was sold, such as materials, production costs, and direct delivery or fulfillment costs. The exact classification can vary by business model and accounting policy.
Yes. A business can keep a healthy amount after direct costs and still end up with weak net profit if payroll, rent, software, marketing, interest, or taxes absorb most of what is left.
This calculator provides planning estimates only. Actual bookkeeping and accounting treatment may differ based on revenue recognition, returns, inventory treatment, and cost classification. Use formal accounting records and professional advice for reporting, tax, and compliance purposes.
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