Variables and units
Revenue
Total sales revenue for the period.
currency
Cost of Goods Sold
Direct cost of the goods sold.
currency
Franchise · Income
Gross Profit
PreviewRun any calculator free during your 14-day trial. Subscribe to save deals, export one-click PDF reports, and keep your full project history.
Run any calculator free during your 14-day trial. Subscribe to save results, export branded reports, and sync across web and mobile. Billing via PayPal.
Use gross profit to see the dollars left after the direct cost of what you sold, a core figure for restaurants, retail, and service franchises.
Browse all calculatorsInteractive workbench
Coffee shop month
Revenue−Cost of Goods Sold
$45,000 of sales less $18,000 of COGS is $27,000 of gross profit.
Common mistakes
- Putting rent or wages in COGS.
- Using pre-tax revenue figures inconsistently.
Step-by-step example
Coffee shop month
1. Start with the example inputs
- Revenue$45,000
- Cost of Goods Sold$18,000
2. Apply the formula
Revenue−Cost of Goods Sold3. Run the numbers
$27,000.00
$45,000 of sales less $18,000 of COGS is $27,000 of gross profit.
What this result means
Gross profit of $27,000.00 is what sales leave behind after the direct cost of the goods sold — before rent, wages, and other operating costs. It is the pool every other expense must fit inside; tracking it weekly catches supplier price creep and portion drift before they reach the bottom line.