Corporate Profitability

Gross Profit Margin

Calculate the most fundamental layer of profitability. How much money is left from sales after paying for the direct costs of creating your product?

Sales & Direct Costs

Total Sales Revenue (₹)

Total money brought in by sales before any deductions.

Cost of Goods Sold (COGS) (₹)

Only the direct costs of producing the goods (raw materials, direct labor). Exclude rent, marketing, and admin salaries.

Gross Margin

40.00%

Of revenue remains as gross profit.

Gross Profit

₹4,00,000

This money must cover all your overheads (rent, marketing) and net profit.

Detailed guide and formula

Compare with alternatives

Key terms and questions

Tax rules and deductions