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Calculating Gross Profit

Allowing for contra account items for Sales and Purchases

So far you have looked at simple gross profit calculations.  This page helps you calculate gross profit under more complex scenarios.  In particular it takes into consideration some other items that impact upon your Net Sales and Cost of Goods Sold (COGS).  These items include that you reduce your Sales to Net Sales such as: Discounts you have allowed on sales, Sales Returns.  It also includes items that could change the value of the purchases of inventory.  These items include such things as discounts you receive or freight that you pay on the delivery of your inventory.

Complete the data entry form below and calculate not only your Gross Profit but other items such as Net Sales and Cost of Goods Sold.


To investigate the impact of discounting on profits.

Gross Profit Conversions