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Franchise · Income

Gross Profit

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Use gross profit to see the dollars left after the direct cost of what you sold, a core figure for restaurants, retail, and service franchises.

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Interactive workbench

Coffee shop month

Revenue - Cost of Goods Sold

$45,000 of sales less $18,000 of COGS is $27,000 of gross profit.

Check your inputs before you rely on the result — calculations are informational only and depend entirely on the numbers you enter. See our Terms.

Variables and units

  • Revenue

    Total sales revenue for the period.

    currency

  • Cost of Goods Sold

    Direct cost of the goods sold.

    currency

Common mistakes

  • Putting rent or wages in COGS.
  • Using pre-tax revenue figures inconsistently.

Step-by-step example

Coffee shop month

$45,000 of sales less $18,000 of COGS is $27,000 of gross profit.