Gross Profit Calculator

Gross Profit Calculator

Running a business can sometimes feel confusing, especially when numbers start flying everywhere. The Gross Profit Calculator makes it super easy to figure out your gross profit and gross profit margin, even if you're not a math whiz.

This page is designed for Australian sole proprietors, small business owners, e-commerce sellers, tradespeople, and shop owners. All amounts are in Australian dollars (AUD).

Find Your Gross Profit

To calculate your gross profit, you only need to input a few numbers and the calculator does the rest.

What You Need to Enter:

• Total Revenue (AUD): The total money you received from sales
• Cost of Goods Sold (COGS): The cost of making or buying the products you sold

What You'll Get:

• Gross Profit ($): Your profit after subtracting direct costs
• Gross Profit Margin (%): The percentage of revenue that is profit

What is Gross Profit?

Gross profit is the amount left over after paying for the direct costs of producing or buying your products. Think about it like this:

• You sell something
• You pay for the materials, production, or purchase of that item
• Whatever is left is your gross profit

What is Gross Profit Margin?

Gross profit margin shows your gross profit as a percentage of revenue. It helps answer questions like:

• Is this product more profitable than others?
• Am I improving compared to last month?
• Are my costs rising?

A 40% margin means you keep 40 cents from every dollar before other costs. Strong sales with poor margins still result in low profits.

Example Calculation for an Australian Business

What Counts as Cost of Goods Sold (COGS)?

Included in COGS:

• Stock or inventory purchases
• Raw materials
• Direct labour (making or assembling products)
• Wholesale product costs
• Packaging
• Freight or shipping for inventory

Not Included in COGS:

• Rent
• Marketing and advertising
• Phone and internet
• Accounting fees
• Insurance
• PAYG tax and superannuation

Why Gross Profit is Important

• Pricing: Check if prices are realistic and profitable
• Costs: Spot rising supplier or material costs
• Decision-making: Decide whether to continue offering certain products or services
• Cash flow: Understand why money might feel tight even if sales are high

Example: If sales rise but gross profit stays the same or decreases, costs may be increasing or prices may be too low.

Gross Profit Margin Benchmarks in Australia

• Retail: 30% – 50%
• Cafés & Restaurants: 60% – 75%
• Trades & Services: 50% – 70%
• E-commerce: 40% – 60%
• Manufacturing: 20% – 40%

Gross Profit vs Net Profit

• Gross Profit: Total Sales minus direct costs (COGS)
• Net Profit: What's left after all expenses and tax