Date created: Feb 21, 2019 • Last updated: Feb 25, 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.Alternate names: Gross Income
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
vs previous period
Summary ChartHere's an example of how to visualize your current Gross Profit data in comparison to a previous time period or date range.
More 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.