Rated Excellent on Trustpilot - Accounting Wise

Gross Profit Calculator

Calculate Your Gross Profit in Minutes with Our Simple Calculator

Quickly calculate your gross profit with our easy-to-use tool. By subtracting the cost of goods sold (COGS) from your revenue, you’ll gain valuable insights into your business’s profitability and make more informed financial decisions.

Build Your Own Package Accounting Packages One Off Pricing
Gross Profit Calculator Hero Image

Gross profit calculator

If you would like to calculate your Gross Profit, and Gross Profit Margin, please enter the details of your sales below and press the Calculate button.

The total value of sales made.

The total cost of all items sold.

Note: These calculations are only for illustrative purposes and are not a substitute for professional advice.

Need assistance? Connect with our Accounting Experts today!

Request Call Back

What is Gross Profit?

Gross profit is the difference between a company’s total revenue and the cost of goods sold (COGS). It measures how much money is left after covering the direct costs associated with producing or delivering the goods and services sold. These direct costs include expenses like raw materials, labour, and manufacturing costs, but exclude indirect costs such as marketing, administration, or taxes. Gross profit is a key indicator of a company’s operational efficiency and profitability, showing how effectively it generates revenue from its core business activities before accounting for other expenses.

What is Gross Profit?
Why Understanding Gross Profit is Important

Why Understanding Gross Profit is Important

Understanding your gross profit is vital for evaluating your business’s financial performance. It helps you assess how efficiently your company is producing and selling its products or services. A strong gross profit margin indicates that your business is managing production costs well and can sustain profitability, even if other expenses increase. Conversely, a low gross profit margin may signal issues with pricing, high production costs, or inefficiencies in the business model that need to be addressed. Regularly monitoring your gross profit enables you to make informed decisions about pricing, cost control, and overall business strategy, which is crucial for long-term financial health and growth.

Get started with the right online accounting service for your UK small business

Build Your Own Package Accounting Packages One Off Pricing
Newsletter Subscription - Accounting Wise

Join Our Newsletter!

Get expert accounting tips, tax updates, and business insights straight to your inbox. Sign up today and stay one step ahead!

Newsletter Signup

Hot Topics

More related Accounting Community, News & Resources

Accounting Wise - key accounting dates December 2025

Key Accounting Dates December 2025

Staying ahead of your accounting and tax deadlines is one of the simplest ways to keep your business compliant and avoid any unwelcome surprises from HMRC. December might be dominated by year-end prep and the festive rush, but there are still several important dates that UK business owners, freelancers, and employers need to keep firmly on their radar.
Accounting Wise - what are cis returns

What are CIS Returns – A Guide for UK Contractors

Understanding CIS Returns is essential for staying compliant as a UK contractor. This guide breaks down how CIS works, who must file, key deadlines, common mistakes, and how subcontractors reclaim tax. Perfect for contractors who want a stress-free, penalty-free approach to CIS compliance.
Accounting Wise - claiming tax deductions as a sole trader

How to Claim Tax Deductions and Save Money as a Sole Trader

Understanding which expenses you can claim as a sole trader is one of the simplest ways to reduce your tax bill. This guide breaks down the rules on allowable expenses, capital allowances, home office costs, and mileage so you can confidently claim every deduction you're entitled to — and avoid paying more tax than you need to.
Formations Wise - Online Company Formation Services

Online Company Formation Services

Free company formation with our Pre-Built or Bespoke Accounting packages!

All official documents provided

Online Hub to manage your company

London Registered office Address

Your own incorporated limited company

Company Formation
Rated Excellent on Trust Pilot - Accounting Wise Logo

Get started with the right accounting solution for your business

Build Your Own PackageAccounting PackagesOne Off Pricing

Contact Us

Interested in Accounting Wise?

Request Call Back0330 113 8442

Accounting Wise is a trading style of Accounting Wise Ltd, a limited company registered in England under company number 09365202. Our registered office is: The Carriages, Station Road, Ware, SG12 9PL UK.

Content is for general information only. Always take advice.