FINANCIAL · PROFIT AND LOSS

Profit and Loss Calculator

Calculate gross profit, net profit, and profit margin percentages from revenue, cost of goods sold, and operating expenses.

Revenue & Costs

Total sales / income for the period.

Direct costs to produce goods/services sold.

Overhead: rent, salaries, marketing, admin (optional).

02 Gross Profit
Gross profit
$40,000.00
Gross margin: 40.00%
03 Net Profit
Net profit
$20,000.00
Net margin: 20.00%
04 Breakdown
Revenue$100,000.00
COGS−$60,000.00
Gross profit$40,000.00
Operating expenses−$20,000.00
Net profit$20,000.00

About This Calculator

Calculate gross profit, net profit, and both margin percentages from your revenue, cost of goods sold (COGS), and operating expenses. Useful for quickly analyzing the profitability of a product, service, or business period.

How It Works

Gross profit is revenue minus the direct cost of goods sold. The gross margin percentage shows what fraction of each revenue dollar remains after covering production costs. Net profit subtracts operating expenses (rent, salaries, marketing, admin) from gross profit. The net margin percentage reflects overall profitability after all operating costs.

The Formula

Net Profit = Revenue − COGS − Operating Expenses

Revenue
Total sales or income for the period
COGS
Cost of Goods Sold — direct costs to produce goods or services
Operating Expenses
Overhead costs: rent, salaries, marketing, administration

Frequently Asked Questions

What is the difference between gross profit and net profit?
Gross profit is revenue minus the direct cost of producing your goods or services (COGS). Net profit subtracts all operating expenses — overhead, salaries, marketing, and administration — from gross profit. Net profit is also called the bottom line.
What is a good gross margin?
Healthy gross margins vary widely by industry. Software businesses often exceed 70%, while retail and manufacturing might see 20–40%. Compare your margin to industry benchmarks to understand your competitive position.
What counts as COGS vs. operating expenses?
COGS includes costs directly tied to producing goods or services — materials, direct labor, manufacturing overhead. Operating expenses are indirect costs like rent, administrative salaries, marketing, and R&D that are not tied to a specific unit of production.
Does this calculator handle negative profit (losses)?
Yes. If COGS exceeds revenue, you'll see a gross loss. If operating expenses push net profit below zero, the result is labeled as a net loss and displayed in red.