Understanding the Gross Profit Margin Formula

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. The … Continue reading Understanding the Gross Profit Margin Formula