Calculate gross profit, gross margin, and markup percentage from revenue and cost of goods sold.
COGS includes direct costs of producing goods: raw materials, direct labor, manufacturing overhead. It excludes selling expenses, administrative costs, and rent.
It depends on the industry. Software companies often exceed 70%, retail averages 25-50%, manufacturing 25-35%, and restaurants typically 60-70%.
Gross profit only subtracts direct production costs (COGS). Net profit also subtracts operating expenses, taxes, interest, and other costs.