Online Tools and Calculators > Financial Calculators > Gross Profit Margin Calculator

Gross Profit Margin Calculator

Sales (Total revenue):
Cost of goods sold:

About This Tool

The online Gross Profit Margin Calculator is used to calculate your gross profit and gross profit margin based on your sales and cost of goods sold.

Gross Profit Margin Definition

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.

Formula

The gross profit margin calculation formula is as following:

Gross profit margin = Gross profit / Total revenue

where,

Gross profit = Total revenue - COGS (Cost of goods sold)

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