# Gross Profit Margin Calculator

###### Updated: Oct 24, 2018

Gross Profit Margin Calculator is used to find out the selling price, the cost or the margin percentage itself

Gross Profit:
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Gross Profit Margin:
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#### Background Information

What does Gross Profit Margin mean?
Gross profit margin is used to compare business models with competitors. And is a financial metric used to assess a company's financial health and business model. By revealing the proportion of money left over from revenues after accounting for the cost of goods sold. The efficient or higher premium companies see higher profit margins.
Formula

Gross profit margin = Gross profit / Total revenue

Where:-

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

A shops COGS (cost of goods sold is $30 and revenue$50, then the gross profit equals ($50 -$30) = $20 Applying the formula,$20 / \$50 = 0.4 or 40%