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Gross Profit Margin Calculator

Gross Profit Margin Calculator is a ratio worksheet. Default 62 / 100.

Page updated 2026-09-14.

Gross Profit Margin Calculator visual
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Calculator

Calculated Results

Gross margin

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x : 1

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Gross profit margin in one line

Gross profit margin = gross profit / revenue, expressed as a percentage. Revenue minus cost of goods sold (COGS), before operating expenses.

On the defaults, 62 of gross profit against 100 of revenue works out to 62.0%.

Reading the result

This is one line of a larger income statement. Compare it against the Operating Margin Calculator to see how it fits with a related metric, and track it over multiple periods rather than judging a single snapshot.

Frequently Asked Questions (FAQ)

How is gross profit margin calculated?

Gross profit margin = gross profit / revenue x 100. Revenue minus cost of goods sold (COGS), before operating expenses. Defaults: 62 / 100 = 62.0%.

Why do I see both a percent and an "x: 1" figure?

The percent is the margin most people quote. The "x: 1" figure is the same division shown as a raw ratio (for example 0.62: 1) instead of a percentage, which is the convention some ratio metrics use on financial statements.

What counts as the denominator?

Use whatever revenue figure matches the period you are analyzing -- monthly, quarterly, or annual -- as long as the numerator (gross profit) covers the same period.

Is a higher or lower number better?

Higher is generally better for a margin: it means more of each revenue dollar turns into profit at that stage of the income statement. Compare against your own trend over time and against public companies in the same industry, since healthy margins vary a lot by sector.

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