Gross Profit Calculator UK

Gross profit is the amount of money your business makes after subtracting the cost of goods sold (COGS) from total revenue.

It shows how efficiently your business produces and sells products or services.

How to Use the Gross Profit Calculator

Using the calculator is simple:

1. Enter your total revenue (sales)
2. Enter your cost of goods sold (COGS)
3. Click calculate

You’ll instantly see:

• Gross profit
• Gross profit margin (%)
• Cost breakdown

Gross Profit Formula

Gross Profit:

Gross Profit = Revenue – Cost of Goods Sold

Gross Profit Margin:

Gross Profit Margin (%) = (Gross Profit ÷ Revenue) × 100

Example Calculation

If your business has:

• Revenue = £50,000
• Cost of Goods Sold = £30,000

Gross Profit = £20,000
Gross Profit Margin = 40%

Why Use Our Gross Profit Calculator?

Instant profit calculations
Helps track business performance
Easy to use for beginners
Ideal for pricing and cost control
Supports better decision-making

Who Should Use This Tool?

This calculator is perfect for:

• Small business owners
• eCommerce sellers
• Retailers and wholesalers
• Freelancers and service providers
• Accountants and business advisors

Why Gross Profit Matters

Understanding your gross profit helps you:

• Set the right prices
• Control costs effectively
• Improve profitability
• Track business performance
• Make smarter financial decisions

What Is Cost of Goods Sold (COGS)?

COGS includes all direct costs related to producing goods or services, such as:

• Raw materials
• Manufacturing costs
• Labour (direct)
• Product costs

It does NOT include indirect expenses like rent or marketing.

Gross Profit vs Net Profit

• Gross Profit: Revenue – COGS
• Net Profit: Gross Profit – All Expenses

Gross profit shows core business performance, while net profit shows overall profitability.

Common Gross Profit Mistakes

• Not including all direct costs
• Confusing gross profit with net profit
• Setting prices too low
• Ignoring profit margins

Our Gross Profit Calculator helps you avoid these mistakes.

Tips to Improve Gross Profit

• Reduce production costs
• Increase prices strategically
• Negotiate better supplier deals
• Improve efficiency
• Focus on high-margin products

Start Using the Gross Profit Calculator

Use our free Gross Profit Calculator above to instantly calculate your profit and improve your business performance.

FAQs – Gross Profit Calculator

What is a good gross profit margin?

It depends on the industry, but typically 30%–60% is considered healthy.

What is included in COGS?

Direct costs like materials, labour, and production expenses.

Is gross profit the same as net profit?

No, net profit includes all expenses, while gross profit only includes direct costs.

Why is gross profit important?

It helps measure how efficiently your business operates.

Is this calculator accurate?

Yes, it provides reliable results based on your inputs.