Learn how to calculate gross profit by subtracting the cost of goods sold from revenue. See how gross profit differs from net profit , gross margin, and operating profit , and how to increase it. Gross profit , also called gross income, is a company's profit after the cost of goods sold has been subtracted from the revenue. Guide to what is Gross Profit Formula . We explain it using a template in excel with examples, and how to calculate & vs net profit formula . The formula to calculate gross profit subtracts a company's cost of goods sold (COGS) from its net revenue. The "Gross Profit " is recognized near the top of a company's income statement, wherein the gross profit is the first profit metric upon deducting COGS from net revenue.
