Gross Profit Rate Calculator

Calculate the gross profit rate by entering revenue and cost of goods sold to determine your profitability percentage

Input Parameters

Calculation Results

Calculation Formula

Gross Profit Rate = (Revenue - COGS) / Revenue × 100%

Where:
Revenue: Total sales revenue
COGS: Cost of goods sold
Gross Profit Rate: Percentage indicating profitability

Gross Profit Rate Calculator Usage Guide

Learn how to use the Gross Profit Rate Calculator to analyze your business profitability

How to Use This Calculator

  1. Enter your total revenue (sales) in the first input field.
  2. Enter your cost of goods sold (COGS) in the second input field.
  3. Click the "Calculate" button to compute your gross profit and profit rate.
  4. The results will show your gross profit amount and the gross profit rate percentage.

Understanding Gross Profit Rate

The Gross Profit Rate (also known as Gross Margin) is a key financial metric that measures the percentage of revenue that exceeds the cost of goods sold. It indicates how efficiently your business is generating profit from its sales.

For example, if your revenue is $100,000 and your COGS is $60,000, your gross profit is $40,000, which gives you a gross profit rate of 40% ($40,000/$100,000 × 100%).

Why Is This Important?

The gross profit rate helps you:

  • Assess your business's profitability
  • Compare performance across different periods
  • Make informed pricing decisions
  • Identify areas for cost reduction

Note: This calculator provides a basic analysis of your gross profit. For comprehensive financial analysis, consider consulting with a financial advisor or accountant.