How to calculate gross profit
Gross profit (calculation)
To calculate gross profit, take your total sales and subtract the cost of making or selling your product.
Total sales - cost of goods sold = gross profit
Let’s say your business sells $12,000 worth of your product, and it cost you $8,000 to make those products. This would leave a gross profit of $4,000.
$12,000 total sales - $8,000 cost of making the product = $4,000 gross profit
You can search for experts in our advisor directory
Find an advisor
How to manage your finances and cash flow
Read article
Keep track of your performance with financial reporting
Find out more