Gross profit
Revenue minus cost of goods sold. What is left to cover everything else.
In Solo Superstars
The subtotal between the COGS block and operating expenses on the Income statement. Service businesses with no inventory often see gross profit equal to revenue.
Example
Revenue 15,600 − COGS 3,200 = gross profit 12,400 (79%).
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- gross margin (as an amount)
Related
- Revenue — What you earn from customers before any costs: product sales, services, shipping charged. The top line of the Income statement.
- Cost of goods sold — What the things you sold cost you to buy or make. Subtracted from revenue to get gross profit.
- Income statement — Revenue, costs and expenses over a period, ending in net income. The report that says whether you made money.
- Net income — Revenue minus every cost and expense. Rolls into retained earnings at year end.