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How do you calculate the gross profit margin percentage?

Asked 2 years ago

When I first started my small business, there was no major need for looking at metrics and using that data for decision-making. However, now that my business is starting to grow, I think it is more important for me to assess and measure the different aspects of my business to make sure that it grows further and I generate revenue. The gross profit margin percentage is one of the key aspects that I need help with.

Izaiah Moss

Sunday, January 16, 2022

The formula for getting profit margin percentage is:

Profit/ sale price *100

If the business's financial data is in excel, calculating profit margin on Excel will be easier by using formulas. Apart from excel, there are profit trackers which track sale price and cost and can calculate the profit and profit margin automatically.

Jolina Regin

Saturday, September 03, 2022

The formula for calculating gross profit margin is in 2 steps:

1. First calculate the gross profit which you get by subtracting COGS from net sales

Net sales - COGS= Gross profit

2. Divide the gross profit by net sales

GP/Net sales * 100

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