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.
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 following:
Gross profit margin = Gross profit / Total revenue
Gross profit = Total revenue - COGS (Cost of goods sold)