How this calculator works
Enter the values for value, rate (%) and review the units before calculating.
Formula / method
Gross margin = (revenue − COGS) ÷ revenue × 100
Worked example
Revenue $100,000 and COGS $60,000 produce $40,000 gross profit and 40% margin.
Assumptions and limitations
Revenue and COGS use the same accounting period and currency.
Gross margin excludes operating expenses, financing, taxes and non-product costs.