Calculate gross profit and profit margin from revenue and cost.
If revenue is ₦50,000 and the cost of goods sold is ₦30,000, gross profit is ₦20,000 and gross margin is 40% of revenue. This is different from a 40% markup on cost.
Gross margin is not the same as net profit. Include operating expenses, taxes and other costs when assessing the whole business.
This calculator uses the cost you enter. It is not a full accounting statement and does not classify overhead, tax, interest or other expenses.
What if my cost is higher than revenue?
The calculator will show a negative profit margin, indicating that the entered cost exceeds revenue.
Check the inputs and assumptions before relying on the result. FreeTools Hub is designed for general calculations and education; it does not replace professional financial, tax, legal or medical advice.