Calculate gross margin from revenue and cost of goods sold.
Gross profit is revenue minus COGS, and gross margin expresses it as a percentage of revenue. Gross margin is the first screen for pricing and efficiency, and changes here move the bottom line fast.
Business Gross Margin
Gross margin = (revenue - COGS) / revenue x 100
Gross margin = (revenue - COGS) / revenue x 100 Gross profit is revenue minus COGS, and gross margin expresses it as a percentage of revenue.
Gross margin is the first screen for pricing and efficiency, and changes here move the bottom line fast.
This calculator takes 2 inputs: Total revenue, Cost of goods sold. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.