Tel: 01299 660 237

Accountants. Advisors. Partners.
Call us now on: 01299 660 237

Gross Profit & Profit Margin Calculator

In accounting, gross profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments.

What is Gross Profit Margin?

Gross margin is the difference between revenue and cost before accounting for certain other costs. Generally, it is calculated as the selling price of an item, less the cost of goods sold (production or acquisition costs, essentially).

How is Gross Profit Calculated?

To calculate gross profit the total cost price is deducted from total sales turnover. The remainder is called gross profit.

[insert_php]
if ((empty($_POST[‘saleprice’])) && (empty ($_POST[‘costprice’]))) {
echo “Please fill in fields Sales Total and Cost of Sale to work out your Gross Profit and Gross Margin.”;
}
if ((!empty($_POST[‘saleprice’])) && (!empty ($_POST[‘costprice’]))) {
$saleprice = htmlentities($_POST[‘saleprice’]);
$costprice = htmlentities($_POST[‘costprice’]);
$profitmade = $saleprice – $costprice;
$grossprofitmargin = $profitmade/$saleprice * 100;
}

[/insert_php]

Sales Total:


Cost Of Sales:

Gross Profit Made on Sales:

Gross Profit Margin (%):


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