This all-in-one online Gross Margin Calculator helps to calculate four interrelated basic business metrics: profit margin, gross profit, revenue and cost of goods sold. You can enter the values of any two of the parameters in the input fields of this calculator and find the other two parameters.
Know your key business metrics
There are four key basic business metrics you can apply to assess the financial performance of your business.
• Cost. Cost of goods sold or simply how much you paid for the stuff that you sell.
• Margin. Profit margin (or gross profit margin), it’s a profitability ratio showing how much of money is left after the cost of goods sold is paid.
• Revenue. The income received from the sale of goods and services to customers.
• Profit. It’s how much money a company makes or simply the difference between revenue and cost of goods sold.
The above business metrics are interconnected by the following equations:
Profit = Revenue – Cost of Goods Sold
Profit Margin = Profit / Revenue
These two equations make it possible to find any two of the four business metrics knowing the other two.
Related calculators
Check out our other financial calculators such as Percent Growth Rate Calculator or CAGR Calculator.