Gross Profit

What is Gross Profit?

Gross profit is the amount of money left after subtracting the cost of goods sold (COGS) from your total revenue. It represents the money available to cover operating expenses, marketing, and generate net profit.

Gross Profit vs. Gross Margin

Gross profit is an absolute dollar amount, while gross margin is a percentage. Both measure the same concept from different angles — gross profit tells you how much, gross margin tells you what proportion.