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

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Gross profit

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