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What percentage of the gross profit is net profit?

Asked 2 years ago

I'm not quite sure I understand the difference between gross profit and net profit. Is there a formula for gross profit and is it different to the formula for net profit? I heard that you can calculate the net profit using the gross profit margin, but I'm not that good with percentages and was hoping that there was a simpler way.

Avik Das

Sunday, October 03, 2021

There is a big difference between gross profit and net profit, and there are formulas to calculate it. The gross profit percentage formula is (Revenue-Goods sold)/Revenue*100. On the other hand, the net profit formula percentage is (Net Income/Revenue)*100. Once you get the gross profit percentage and net profit percentage, you can easily calculate the exact percentage of net profit in gross profit.

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