Gross Profit - How do I calculate gross profit?

Q: How do I calculate gross profit?

To calculate gross margin subtract Cost of Goods Sold (COGS) from total revenue and dividing that number by total revenue (Gross Margin = (Total Revenue – Cost of Goods Sold)/Total Revenue). The formula to calculate gross margin as a percentage is Gross Margin = (Total Revenue – Cost of Goods Sold)/Total Revenue x 100.

Answer

To find the gross margin, take the whole revenue and remove the cost of goods sold (COGS) from it. Then, divide that result by total revenue. Gross Margin = (Total Revenue - Cost of Goods Sold)/Total Revenue x 100 is the formula to get gross margin as a percentage.

Gross Profit - How do I calculate gross profit?

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