Calculate gross margin, gross profit, and COGS from revenue and cost of goods sold with detailed financial analysis.
Choose your calculation mode: "From Revenue & COGS" for direct calculation, "From Revenue & Margin %" to find COGS, or "From COGS & Margin %" to find required revenue.
Enter your revenue (total sales or selling price) and cost of goods sold (COGS). COGS includes direct costs like materials, labor, and manufacturing expenses.
If using margin-based modes, enter the desired gross margin percentage — this represents what portion of revenue remains after covering direct costs.
Optionally, switch to multi-product mode to compare up to 5 products side by side by adding additional products with their own revenue and COGS.
Click "Calculate" to see your gross profit, gross margin percentage, visual bar chart comparison, and detailed product breakdown.
Gross margin measures the percentage of revenue that exceeds the cost of goods sold (COGS). It shows how efficiently a company produces and sells its products. A higher gross margin means more money is available to cover operating expenses, marketing, R&D, and generate net profit. For example, if a product sells for $100 and costs $60 to produce, the gross margin is (($100 - $60) / $100) × 100 = 40%. This means for every dollar of revenue, $0.40 remains after covering direct production costs. Gross margin differs from markup: markup is calculated on cost, while gross margin is calculated on revenue.
A SaaS company with $500,000 in annual revenue and $150,000 in COGS (hosting, support staff, and direct costs). Gross Profit = $500,000 - $150,000 = $350,000. Gross Margin = ($350,000 / $500,000) × 100 = 70%. This 70% gross margin is typical for software companies where the cost to serve each additional customer is relatively low.
A retail clothing store with $200,000 in annual revenue and $130,000 in COGS (cost of inventory purchased). Gross Profit = $200,000 - $130,000 = $70,000. Gross Margin = ($70,000 / $200,000) × 100 = 35%. This 35% gross margin means the store retains 35 cents of each sales dollar after covering the cost of goods, which must cover rent, payroll, utilities, and other operating expenses.
A restaurant with $300,000 in annual revenue and $210,000 in COGS (food ingredients, beverages, and kitchen supplies). Gross Profit = $300,000 - $210,000 = $90,000. Gross Margin = ($90,000 / $300,000) × 100 = 30%. Restaurants typically operate on thin gross margins (25-35%), making efficient cost management critical. Even a small improvement in food cost percentage can significantly impact profitability.
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