💳 Billing & Finance · Free

Gross Profit Calculator

Calculate gross profit, gross margin percentage, and markup from revenue and cost of goods sold. Free gross profit calculator for service businesses.

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Profit breakdown

Gross profit€30,000.00
Gross margin60.0%
Markup on cost150.0%
Benchmark(For service businesses)Excellent (≥60%)

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Frequently asked questions

What is gross profit?

Gross profit = Revenue minus Cost of Goods Sold (COGS). It shows how much you earn before operating expenses like rent and salaries.

What is a good gross profit margin for service businesses?

Service businesses typically target 40–70% gross margins. Lower margins may indicate pricing or cost issues.

What is the difference between gross profit and net profit?

Gross profit deducts only direct costs (COGS). Net profit also deducts operating expenses, taxes, and interest.