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Gross Profit Calculator

Calculate gross profit and gross margin from revenue and cost of goods sold.

Your numbers

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Subcontractors, equipment hire, disposal.

Result

Gross profit $156,000
Gross margin 32.50%
Total cost of goods sold $324,000
Gross profit per revenue dollar $0.33
Gross profit is $156,000 on 480,000 of revenue: a 32.50% gross margin. Every revenue dollar leaves $0.33 to cover overhead and profit.

Gross profit is before overhead, admin, marketing and owner's pay. It is the money available to cover those, not what you keep.

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Questions

About this calculator

What belongs in cost of goods sold?

Costs that only exist because the job exists: materials, direct labour, subcontractors, disposal, equipment hire. Office rent and salaried admin are overhead, not COGS.

Is the field crew's wage COGS or overhead?

COGS when they are on billable work. Time spent in the yard, training or idle is really overhead, which is why tracking billable hours matters so much.

The formula

gross profit = revenue − cost of goods sold

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