Gross Profit Margin Calculator: Check How Profitable a Company Is

Understanding a company’s profitability is crucial for investors, business owners, and analysts. The Gross Profit Margin (GPM) is a key metric that tells you how efficiently a company produces and sells its products.

With our Gross Profit Margin Calculator, you can quickly calculate the GPM and get an instant visual interpretation.

What is Gross Profit Margin?

Gross Profit Margin shows the percentage of revenue that exceeds the Cost of Goods Sold (COGS). It measures how efficiently a company produces goods and manages production costs.

Formula: Gross Profit Margin (%)=Revenue – COGSRevenue×100\text{Gross Profit Margin (\%)} = \frac{\text{Revenue – COGS}}{\text{Revenue}} \times 100Gross Profit Margin (%)=RevenueRevenue – COGS​×100

• Revenue: Total income from sales.
• COGS: Direct costs of producing goods sold.

How to Use the Calculator

1. Enter Revenue in ₹.
2. Enter Cost of Goods Sold (COGS) in ₹.
3. Click Calculate.

The calculator will show your Gross Profit Margin and a color-coded indicator:

• ✅ Strong (≥ 40%): High profitability, healthy business.
• ⚠️ Moderate (20–39%): Average profitability.
• ❌ Low (< 20%): Low profitability, consider reviewing costs.

Why GPM Matters

• Investors: Helps evaluate business efficiency before investing.
• Business Owners: Understands profitability per product or service.
• Analysts: Compares industry competitors effectively.

A high GPM indicates strong pricing strategy and low production costs, while a low GPM may signal operational inefficiency.

Try the Calculator Now

Use the Gross Profit Margin Calculator above to quickly measure any company’s profitability and make informed business or investment decisions.