Gross Profit

In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments. Note that this is different from operating profit (earnings before interest and taxes).
Net sales are calculated:

Net sales = Gross sales

Gross profit is found by deducting the cost of goods sold:

Gross profit = Net sales – Cost of goods sold.

eg. Google has total revenue of 12,214,000 and a cost of revenue of 5,013,000 so therefore its gross profit is (12214000-5013000) = 7201000

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