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Interactive calculator

Gross margin calculator

See gross profit and the share of revenue left after direct costs.

Last reviewed 1 October 2026

Enter your numbers

Use sales for the same period as the direct costs.

Costs directly attributable to those sales.

Your entries are calculated on this device. They are not uploaded or saved.

Illustrative result

Gross profit
$20,000
Gross margin
40.0%

Gross margin is the share of each sales dollar left after direct costs, before overheads and other expenses.

How to use this tool

Gross profit = revenue − direct costs. Gross margin = gross profit ÷ revenue × 100.

A simple example

$50,000 sales less $30,000 direct costs is $20,000 gross profit and a 40% margin.

Assumptions and limits

This is before overheads, tax, interest and other expenses. A high gross margin does not necessarily mean net profit.

General information only. Check your own records and speak with a qualified professional where the decision depends on accounting, tax, legal or financial advice.

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