{
  "slug": "gross-profit",
  "title": "Gross Profit Calculator",
  "heading": "Gross Profit Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/gross-profit",
  "summary": "Gross profit, COGS ratio, and profit per unit sold.",
  "description": "Gross profit is what is left after the direct cost of delivering the product, before overhead. It is the ceiling on everything else the business can afford.",
  "formula": "Gross profit = Revenue − COGS. Gross margin = Gross profit ÷ Revenue.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=gross-profit",
  "inputs": [
    {
      "id": "units",
      "label": "Units sold",
      "kind": "number",
      "hint": null,
      "default": 1200,
      "unit": null,
      "min": 0,
      "max": null
    },
    {
      "id": "price",
      "label": "Average selling price",
      "kind": "number",
      "hint": null,
      "default": 65,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "unitCost",
      "label": "Direct cost per unit",
      "kind": "number",
      "hint": null,
      "default": 27,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "gross",
      "label": "Gross profit",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "marginPct",
      "label": "Gross margin",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "revenue",
      "label": "Revenue",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "cogs",
      "label": "Cost of goods sold",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "perUnit",
      "label": "Profit per unit",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Units sold: 1200",
      "Average selling price: 65 $",
      "Direct cost per unit: 27 $"
    ],
    "outputs": [
      "Gross profit: $45,600.00",
      "Gross margin: 58.46%",
      "Revenue: $78,000.00",
      "Cost of goods sold: $32,400.00",
      "Profit per unit: $38.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter units sold.",
      "Enter average selling price ($).",
      "Enter direct cost per unit ($).",
      "Read your gross profit on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "units": 720,
        "price": 39,
        "unitCost": 16
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "units": 1200,
        "price": 65,
        "unitCost": 27
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "units": 1920,
        "price": 104,
        "unitCost": 43
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the gross profit calculator work?",
      "a": "Gross profit is what is left after the direct cost of delivering the product, before overhead. It is the ceiling on everything else the business can afford. The underlying maths is: Gross profit = Revenue − COGS. Gross margin = Gross profit ÷ Revenue."
    },
    {
      "q": "What do I need to enter?",
      "a": "3 values: units sold, average selling price, and direct cost per unit. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the gross profit result mean?",
      "a": "It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/margin",
    "https://www.revenuelab.fyi/toolbox/markup",
    "https://www.revenuelab.fyi/toolbox/break-even"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Gross Profit Calculator (https://www.revenuelab.fyi/toolbox/gross-profit)"
}