Gross Margin Calculator

Calculate gross profit and gross margin from net sales and the cost of goods sold.

What is the Gross Margin Calculator?

Gross margin shows how much revenue remains after direct production costs, before operating expenses, interest and tax.

How does it work?

Gross profit = revenue − COGS. Gross margin = gross profit ÷ revenue.

Formula

Gross margin % = (Revenue − COGS) ÷ Revenue × 100

Example

Revenue of ₹10 lakh and COGS of ₹6.2 lakh give ₹3.8 lakh gross profit — a 38% gross margin.

Frequently asked questions

What goes into COGS?

Direct costs of making or buying what you sell: raw materials, purchase cost of goods, direct labour and freight-in. Rent and marketing are operating expenses.

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