FinCalcs

Gross Margin Calculator

Measure profitability before overhead.

Runs locally in your browser — your numbers never leave this page
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Try: Revenue=120000, COGS=72000 → $120,000, $72,000, $48,000, 40.00%

How to use

Gross margin looks at revenue minus the direct cost of goods sold. It shows pricing power and production efficiency before operating costs.

Formula

Gross margin = (Revenue − COGS) / Revenue

FAQ

Gross vs net margin?

Gross excludes operating, interest and tax costs; net includes everything.

What hurts gross margin?

Rising material or labor costs, or discounting prices.

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