The Gross Profit Margin Calculator is used to calculate your gross profit and gross profit margin based on your sales and cost of goods sold.
The gross profit margin is a financial ratio, which is a measurement of a company’s manufacturing and distribution efficiency during the production process. It is calculated as a company’s gross profit divided by total revenue. It is also known as gross margin or gross profit rate.
The gross profit margin calculation formula is as follows:
Gross profit margin = Gross profit / Total revenue
Gross profit = Total revenue - COGS (Cost of goods sold)