The formula to calculate gross profit subtracts a company's cost of goods sold (COGS) from its net revenue. The "Gross Profit " is recognized near the top of a company's income statement, wherein the gross profit is the first profit metric upon deducting COGS from net revenue. Learn how to calculate gross profit . Discover the formula , examples, and tips to manage your gross profit margin effectively. Gross profit , also called gross income, is a company's profit after the cost of goods sold has been subtracted from the revenue. Learn how to calculate gross profit , the difference between sales revenue and cost of goods sold, and how to use it to measure profitability. Download a free template and access additional resources on accounting and finance.
