See your gross and net profit from costs

Revenue & profit

Calculate gross profit, net profit, and profit margin from your revenue, cost of goods sold, and operating expenses.

Formula

gross profit = revenue − COGS · net profit = gross profit − operating expenses

Assumptions

• COGS covers direct costs of producing what you sold (materials, direct labor); operating expenses cover everything else running the business (rent, salaries, marketing, software).
• Excludes taxes, interest, and one-off items — this is an operating profit view, not a full accounting statement.

Frequently asked questions

What's the difference between gross profit and net profit?
Gross profit only subtracts the direct cost of what you sold (COGS). Net profit also subtracts everything else it costs to run the business — rent, salaries, marketing — giving a more complete picture of profitability.

Why is net margin so much lower than gross margin?
Operating expenses eat into gross profit before you get to net profit. A business can have a healthy gross margin but still run at a thin (or negative) net margin if overhead is high relative to revenue.