Gross Profit Calculator

Subtract the cost of goods sold from sales revenue. Enter your own values below to see gross profit and check the method behind it.

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Your inputs

Change the example values to match your situation.

Your result

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Fill in your inputs and select Calculate.
Your result and breakdown will appear here.

How this calculator works

Gross profit = revenue − the entered costs. The margin divides this amount by revenue.

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What is Gross Profit Calculator?

Gross Profit Calculator helps you subtract the cost of goods sold from sales revenue.

The main result is gross profit, with a breakdown of gross profit margin. The formula, example and assumptions below explain how to interpret it.

How to use Gross Profit Calculator

Use the example to get familiar with the form, then enter your own figures. Any rates in the example are illustrative. Check the field labels and units before calculating.

  1. Gather revenue (₹) and cost of goods sold (₹). Use values from the same situation or reporting period.
  2. Replace the example revenue with your own value, then complete the other fields. Check the displayed units.
  3. Select Calculate and read gross profit with its result breakdown. Change one input and calculate again to compare a second scenario. Reset restores the original example.
  • Enter revenue in ₹, at least 0. Decimals are accepted.
  • Enter cost of goods sold in ₹, at least 0. Decimals are accepted.

Gross Profit Calculator: a worked example

With the inputs below, the result is ₹40,000 (gross profit). Follow the example, then replace these illustrative values with your own.

Example inputs and output
Input or outputExample value
Revenue (₹)₹1,00,000
Cost of goods sold (₹)₹60,000
Gross profit₹40,000
Gross profit margin40 %

Understanding the Gross Profit result

Read gross profit alongside gross profit margin. These describe different parts of the same calculation.

Displayed results use a readable number of decimal places. When checking a result by hand, keep extra precision until the last step. To compare scenarios, change one input at a time and keep the others fixed.

  • Example Gross profit margin: 40 %

Gross Profit Calculator: assumptions and common mistakes

A useful estimate starts with the right inputs. Check the following assumptions and limits before applying the result to your situation.

  • Separate revenue from cash receipts and cost from selling price. Check the denominator before comparing a margin with a markup.

For wider guidance, visit ICAI. The formula and scope of this specific tool are stated on this page.

Gross Profit Calculator FAQs

What does Gross Profit Calculator calculate?

Gross Profit Calculator helps you subtract the cost of goods sold from sales revenue. Its main output is gross profit in ₹.

What inputs do I need for Gross Profit Calculator?

You need revenue (₹) and cost of goods sold (₹). Use the field labels and units to match your figures to the formula.

Which formula does Gross Profit Calculator use?

Gross profit = revenue − the entered costs. The margin divides this amount by revenue.

What is a worked example for Gross Profit Calculator?

Example inputs: Revenue: ₹1,00,000; Cost of goods sold: ₹60,000. The result is ₹40,000 (gross profit).

How should I enter revenue?

Enter revenue in ₹, at least 0. Decimals are accepted.

How do I choose cost of goods sold?

Enter cost of goods sold in ₹, at least 0. Decimals are accepted. The example uses ₹60,000; replace it if your circumstances differ.

How should I read gross profit?

Read gross profit alongside gross profit margin. These describe different parts of the same calculation.

Why might my Gross Profit Calculator result differ from my records?

Separate revenue from cash receipts and cost from selling price. Check the denominator before comparing a margin with a markup. Differences in entered values, units or rounding can also change the comparison.

Can I compare two scenarios in Gross Profit Calculator?

Yes. Note your first gross profit, change revenue or another input, and select Calculate again. Editing a field clears the old result so it is not mistaken for a new calculation.

Is Gross Profit Calculator free, and where are my inputs calculated?

This calculator is free to use without signing in. Its formula runs in your browser; calculator inputs are not sent to a calculation API. The inputs reset to the example values when you reset the form or start a fresh page.