Gross profit calculator

This gross profit calculator helps you work out how big a profit a business has made, after subtracting the cost of sales from revenue.

The Invezz gross profit calculator lets you calculate profits using just a few simple inputs. Keep reading to see how our gross profit calculator works, and why it’s important to monitor your gains and losses.

How to use our gross profit calculator

To use our gross profit calculator, just follow these steps:

  1. Enter how much a company has made in sales.
  2. Enter the cost of sales (which are direct costs directly related to sales, rather than indirect costs such as fixed overhead).
  3. Click calculate to see your gross profit.

How the gross profit calculator works

The gross profit calculator determines how much money your business has made after subtracting direct costs from your gross sales total, giving you an important indicator of how you’re performing as a company.

Why should I use it?

You should use this calculator because merely counting raw sales numbers isn’t enough to gauge the success of a business. By seeing where your gross profits stand, you can set concrete goals for your company and work to improve efficiency to increase your profit margin and thus your gross profit in the future.

What is gross profit? 

Gross profit is the profit that a company makes after subtracting the costs involved with making and selling its products. For companies that provide services rather than goods, gross profit refers to the profit that those companies make after subtracting the costs involved with providing their services.

Written by: Jonah Keri
Jonah Keri is a trader and analyst who spent 11 years at Investor's Business Daily covering the markets. He now writes about stocks, cryptocurrencies, and other investments for Invezz and about emerging technologies for private clients.