Gross Profit Calculator

Profit per unit, gross margin, and totals across orders, computed from cost and price with every result labeled for what it includes. Add real selling costs to see contribution profit beside it.

What do you know?

Decimals allowed (weight, hours)

Whole numbers: this counts orders

Add fees and real selling costs

Payment or marketplace percentage

Charged once per order, however many units it contains

Gross profit is a layer, not the answer

The profit and loss statement is a staircase: revenue, minus COGS is gross profit, minus selling costs is contribution, minus operating costs is operating profit, minus tax is net. Each step answers a different question. Gross profit answers "is the product itself worth selling"; it cannot answer "is the business making money". This calculator keeps you on the step you asked for, labels it, and shows the next step down when you enter the selling costs, without ever borrowing the word "net" for a number that is not.

Gross profit FAQ

How is gross profit calculated?

Gross profit is revenue minus the direct cost of the goods sold: per unit, selling price minus unit cost; for a period, total revenue minus total COGS. It deliberately excludes selling costs, fees, wages and overhead. The calculator above computes it per unit, per order and across the number of orders you enter, always labeled as gross so it cannot be mistaken for take-home profit.

What is the difference between gross profit and gross margin?

Gross profit is an amount of money; gross margin is that amount as a percentage of revenue. $40 profit on a $100 sale is a 40% gross margin. Profit tells you what a sale contributes in currency; margin lets you compare products and businesses of different sizes. You get both here from the same inputs.

Should COGS include shipping and transaction fees?

Accounting convention says COGS covers costs of producing or acquiring the product: purchase price, inbound freight, direct materials and labor. Selling costs, outbound shipping, payment fees and marketplace commissions, belong below gross profit. This tool honors the distinction: unit cost drives the gross numbers, and selling costs entered in the fees section produce a separately labeled contribution profit, so the two layers never blur.

Why does my gross profit look fine but my bank account does not?

Because everything below gross profit still has to be paid: fees, shipping, ads, returns, then rent, wages and tax. A product with 40% gross margin can lose money per order once acquisition costs are counted. Open the fees section above and compare the gross line to the contribution line: the gap between them is where healthy-looking businesses quietly bleed.