How to use this tool
Enter the revenue and direct costs and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
Formula
Gross profit = revenue − direct costs; gross margin = gross profit ÷ revenue × 100.
Example
Revenue 10,000 and direct costs 6,000 produce gross profit 4,000 and gross margin 40%.
Prepare your inputs
Use revenue and its matching direct costs for the same period. Keep currency and treatment of refunds consistent.
Understand the result
The percentage is profit as a share of revenue, not markup on cost. A positive gross margin can still accompany an operating loss after overhead.
About this version
This page uses a shared calculation method. Industry and country labels provide a browsing context; they do not change the formula or imply specialist or local regulatory validation. Currency labels do not perform currency conversion.
Limitations and assumptions
Simplified gross margin excludes overhead, tax, financing, refunds and accounting adjustments. Detailed content, accessibility and edge-case review remains ongoing.