Gross Profit Formula is the formula used to calculate a company’s revenue minus its cost of goods sold. This number is a measure of the company’s ability to generate profits from sales, and provides an indication of how well a business is utilizing its resources. The formula can be calculated out as follows: Gross Profit = Revenue – Cost of Goods Sold (COGS). By understanding the Gross Profit Formula, businesses can gain insight into their overall health and make more informed decisions that will drive growth in the long-term.