Business & Sales

What Is Gross Profit?

Gross profit is revenue minus the cost of goods sold (COGS): the direct costs of producing or buying the products that were sold. It shows how much money is left to cover operating expenses, interest, and taxes, and it is the basis for calculating gross margin.

Formula

Gross profit = revenue − cost of goods sold. Gross margin = gross profit ÷ revenue × 100.

Gross vs. Net Profit

Net profit subtracts all remaining costs — rent, salaries, marketing, platform fees, interest, and taxes — from gross profit.

🧮 Calculate It Yourself

Put Gross Profit into practice with these free calculators — no sign-up, nothing stored.

🏷️ Markup & Margin Calculator Find your selling price, or check your real profit margin. Calculate → 🛍️ Online Seller Fee & Profit Calculator See exactly what Etsy, eBay, or Amazon take — and what you keep. Calculate →

🔗 Related Terms

Profit Margin Revenue Markup Marketplace Seller Fees

More Business & Sales Terms

📖 Browse all glossary terms or explore all free calculators.

Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.