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finance.business-gross-margin Calculator
Calculates gross margin percentage and gross profit in a business finance context from revenue and direct costs. Gross margin improvement is the highest-leverage financial action in most businesses — each point of margin improvement drops entirely to operating income.
Inputs
Revenue
Total income generated before any costs are deducted. Profitability depends on how much survives after expenses.
Cogs
Direct costs to produce the goods sold — materials, labour, manufacturing. Does not include overhead or SG&A.
Fixed Costs
Reference formula or conversion factor shown for context.
Results
gross profit
Revenue minus cost of goods sold. Shows how much remains after production costs before operating expenses like rent and salaries.
gross margin
Gross profit as a percentage of revenue. Tells you how much of each dollar of sales remains after production costs. Higher gross margin gives more room to cover fixed costs.
contribution margin
Sample size or count used in the calculation.
contribution %
Sample size or count used in the calculation.
monthly equiv
Sample size or count used in the calculation.
daily equiv
Reference formula or conversion factor shown for context.