Sales Funnel Gross Margin Calculator
Estimate gross profit and gross margin across your sales funnel using traffic, conversion rates, average order value and cost of goods sold.
Overview
Use this sales funnel gross margin calculator to estimate how much revenue and gross profit your funnel may produce from visitor volume, conversion rate, average order value and cost of goods sold. It can help you compare pricing and acquisition assumptions before looking at wider operating costs.
How it works
The calculator estimates customers by multiplying visitors by the conversion rate. It then calculates revenue from customers multiplied by average order value. Cost of goods sold is applied as a percentage of revenue, and gross profit is revenue minus those direct costs. Gross margin is gross profit divided by revenue, expressed as a percentage. If you enter ad spend, the calculator also shows gross profit after advertising spend.
How to use this calculator
- 1Enter the number of visitors entering your funnel.
- 2Add your overall conversion rate as a percentage.
- 3Enter your average order value.
- 4Input cost of goods sold as a percentage of revenue.
- 5Add ad spend if you want to see profit after advertising.
- 6Review the estimated customers, revenue, gross profit and gross margin.
Example Calculation
Visitors
10000
Conversion Rate
3%
Average Order Value
$120
Cost of Goods Sold
35%
Ad Spend
$1,500
Gross Profit
$19,500.00
With 10,000 visitors and a 2.5% conversion rate, the funnel produces about 250 customers and $30,000 in revenue. At 35% cost of goods sold, gross profit is about $19,500, gross margin is 65%, and net after ad spend is about $18,000.
Frequently asked questions
What does this calculator estimate?
It estimates customers, revenue, gross profit, gross margin and optional profit after ad spend for a sales funnel.
What is gross margin in a sales funnel?
Gross margin is the percentage of revenue left after subtracting direct costs such as product, fulfilment or delivery costs.
Does gross margin include marketing or overhead costs?
No. Gross margin usually excludes ad spend, salaries, rent, software and other operating expenses. This calculator shows ad spend separately.
What should I include in cost of goods sold?
Include direct costs tied to delivering the sale, such as product cost, manufacturing, fulfilment or service delivery costs.
Can I use this for lead generation funnels?
Yes, if you can estimate the percentage of visitors who become paying customers and the average revenue per sale.
Why is profit after ad spend different from gross profit?
Gross profit removes only direct costs. Profit after ad spend subtracts your advertising spend as an additional cost.
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Assumptions and warnings
Assumptions
- Conversion rate applies evenly across all visitors in the selected period.
- Average order value is consistent across converted customers.
- Cost of goods sold is entered as a percentage of revenue and includes only direct delivery or production costs.
- Gross margin excludes overheads, payroll, software, rent, taxes and financing costs unless you include them separately outside this calculator.
Warnings
- This calculator provides a business estimate only and should not be treated as accounting or financial advice.
- Results depend on the accuracy of your conversion, pricing and cost assumptions.