Gross Profit
Date created: Oct 12, 2022 • Last updated: Oct 12, 2022
What is Gross Profit?
Gross Profit is the amount left over from total revenues after Cost of Goods Sold (COGS) has been deducted. COGS will typically include the cost of making and selling the product or the cost of services provided by the company.
Gross Profit Formula
How to calculate Gross Profit
An Oil & Gas company generated a total revenue of $1 million in 2019, and incurred a COGS of $400,000 in that same year. Therefore, the company's gross profit for 2019 was $600,000.
Start tracking your Gross Profit data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data. Choose one of the following available services to start tracking your Gross Profit instantly.
How to visualize Gross Profit?
Use a summary chart to visualize your Gross Profit data and compare it to a previous time period.
Gross Profit visualization example
Summary Chart
Gross Profit
Chart
Measuring Gross ProfitMore about Gross Profit
Gross Profit indicates how well a company uses its labour and supplies to produce goods and services. This measure only considers variable costs, such as direct labor or commission, as opposed to fixed costs, such as rent or insurance.
Gross Profit is always expressed as a monetary value. It’s equally important to look at Gross Profit as a percentage of Revenue (Gross Margin or Gross Margin Percentage).
Metric Toolkit
Start tracking your Gross Profit data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data. Choose one of the following available services to start tracking your Gross Profit instantly.