Calculate gross margin
Enter total revenue and cost of goods sold for the period or segment you want to review. The output focuses on percentage quality first, with gross profit and cost ratio alongside it.
Three useful review scenarios.
Calculator
Gross Margin Calculator
Calculate gross margin from total revenue and cost of goods sold. This is the cleaner view when you want to review a period, category, channel, or client segment instead of a single unit price.
Formula
How to calculate gross margin
Gross margin = (Revenue - COGS) / Revenue × 100
If revenue is $185,000 and cost of goods sold is $111,000, gross profit is $74,000. Divide that by revenue and gross margin is 40%.
Where it helps
- Monthly, quarterly, or category-level profitability reviews.
- Comparing gross quality across channels or client groups.
- Spotting whether a revenue jump is actually healthy.
Useful next step
If gross margin is drifting, work backwards through selling price, discount, or markup to see which pricing lever changed the economics.