Gross Profit Margin Calculator:
Gross profit is equal to total sales
revenue less cost of goods sold. Sales revenue is
the revenue that is generated through the sales of
the products or provision of services. Cost of goods
sold is the cost of products that are sold or the
cost of the services that are provided to generate
revenue . This figure is very important for the
management of the business because it covers all
indirect expenses (selling and marketing expenses
etc.) and also provide for net profit. The relationship between gross profit,
cost of goods sold and and the sales revenue may be
expressed by the following equation:
= Revenue - Cost of goods sod
If revenue is $100 and cost of goods sold is $60
the gross profit would be $40 ($100 - $60). The gross profit
margin or gross profit ratio would be 40%
free gross profit margin calculator to calculate
gross profit margin rate.
How to Use Gross Profit Margin Calculator:
Enter in sales (Total Revenue).
Enter in cost of goods sold
Press calculate button.
Wait for the result. Our free
gross profit margin calculator will calculate the
gross profit ratio for you.