Gross Profit Margin Calculator

Profitability
Updated Apr 2026 • Has calculator

The percentage of revenue remaining after deducting the cost of goods sold.

Calculate Gross Margin

Gross Margin Formula

Gross Margin = ((Revenue − COGS) ÷ Revenue) × 100

Total net revenue (USD millions)

Cost of sales or cost of revenue (USD millions)

Gross Margin

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Not investment advice.

What is Gross Margin?

Gross profit margin subtracts the cost of goods sold (COGS) from revenue and divides the result by revenue, expressing how efficiently a company produces its products or services before accounting for operating expenses. High gross margins are characteristic of software, pharmaceuticals, and branded consumer goods, where the cost to deliver each additional unit is low. Gross margin is often the first line of defence in profitability analysis: a declining gross margin can signal rising input costs, pricing pressure, or a less favourable product mix.

Worked Example

Worked example — Apple Inc. (AAPL)

FY2024

Step 1  Revenue: $391,035M
Step 2  Cost of sales (COGS): $210,352M
Step 3  Gross profit: $391,035M − $210,352M = $180,683M
Step 4  Gross margin = $180,683M ÷ $391,035M × 100 = 46.21%
Step 5  → Apple retained $0.46 of every $1 in revenue after production costs

Source: Apple Inc. — Form 10-K filings (SEC EDGAR) (2024-11-01)

How to Interpret Gross Margin

< 20
Thin — commodity or highly competitive business
20 – 40
Moderate — typical manufacturing or retail
40 – 60
Strong — branded goods or software
> 60
Premium — IP-rich or high-margin service business

Gross margin of Nordic companies we track

Latest reported quarter, calculated from each company’s own report. Open a company for its charts and full history.

Gross margin by company, latest quarter
CompanyQuarterGross marginCalculator
Ericsson Q3 2026 47.1% Use in calculator
Nokia Q2 2026 44.6% Use in calculator
Nokian Tyres Q2 2026 26.1% Use in calculator
Novo Nordisk Q2 2026 78.2% Use in calculator
Orion Q2 2026 65.2% Use in calculator
Pandora Q2 2026 80.5% Use in calculator
Saab Q2 2026 22.6% Use in calculator
Vaisala Q2 2026 57.3% Use in calculator
Valmet Q2 2026 27.3% Use in calculator
Vestas Q2 2026 17.0% Use in calculator
Volvo Group Q2 2026 25.7% Use in calculator

📚 Profitability Metrics — Complete the path

  1. Gross Margin
  2. Operating Margin
  3. EBITDA Margin
  4. Net Margin
  5. ROE