Revenue quality
Gross Margin Calculator
Measure gross profit, gross margin percentage, and the portion of revenue consumed by direct costs.
Business inputs
Adjust the values to model your scenario.
Business result
Performance breakdown
Your breakdown will appear here
Enter your business figures and calculate to view the result.
Formula
How it is calculated
Gross Margin = (Revenue − Cost of Goods Sold) ÷ Revenue × 100
Results are estimates based on the figures entered and may exclude taxes, fees, accounting adjustments, or employment rules not shown.
Frequently asked questions
What does gross margin show?
It shows how much revenue remains after direct costs, before operating expenses, interest, and tax.
What is the COGS ratio?
It is cost of goods sold divided by revenue—the complement of gross margin when no other direct adjustments apply.
Is a higher gross margin always better?
Usually it provides more room for operating costs and profit, but healthy levels vary widely by industry and business model.