Step 1
Tell Us About Your Sale
You do not need accounting knowledge. Just enter the amounts you know.
Enter the amount the customer pays, or the selling amount before VAT if VAT has not been included.
Enter the direct amount you paid to purchase or produce the goods or services that generated this sale.
Does your selling amount include VAT?
Step 2
Your Results
Enter your sales and direct cost above.
Your profit and margin will appear here automatically.
Step 3
Understand the Calculation
Your Sales
This is the value of the goods or services you sold. If your selling amount includes VAT, the calculator separates the VAT before calculating your gross profit.
Your Direct Cost
This is what you paid to buy or produce the goods or services that you sold. It is not the same as all the expenses of running your business.
Gross Profit
Your sales before VAT minus the direct cost of the goods or services sold.
Gross Profit Margin
Your gross profit expressed as a percentage of your sales before VAT.
Example
Imagine you buy goods for 380,000 TZS and sell them for 1,200,000 TZS before VAT.
Sales
TZS 1,200,000
Direct Cost
TZS 380,000
Gross Profit
TZS 820,000
The resulting gross profit margin is approximately 68.33%.
Important Information
This calculator provides an estimate based on the information you enter. Gross profit and gross margin are different from net profit because they do not account for all operating expenses such as salaries, rent, utilities, financing costs and other business expenses. VAT treatment can also vary depending on the transaction and applicable rules. This tool is provided for informational purposes and is not professional accounting, tax, legal or financial advice.