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Gross Profit Margin Calculator

LAST UPDATE: September 1st, 2018

Calculator

What is Gross Profit Margin?

Gross profit margin is a measurement of the revenue of the firm in relation to the cost of goods sold.

Formula

Gross Profit Margin = ((Revenue – Cost of Goods Sold) / Revenue) x 100%

Example

A company has a revenue of $17,000 and cost of goods sold of $4,000.

Gross Profit Margin = (($17,000 – $4,000) / $17,000) x 100% = ($13,000 / $17,000) x 100% = 0.7647 x 100% = 76.47%

Therefore, this company has a gross profit margin of 76.47%.

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