# Gross Profit Margin Calculator

## What is meant by gross profit margin?

The meaning of gross profit is simple as these words mean that they are the total revenue of a company which is minus the cost of goods that have been sold so far. In other words, gross profit can be stated to be the profit which an organization makes. Moreover, this gross profit is said to be the profit made by a company only when the costs related to the making as well as selling of the products have been deducted or even when the costs associated with the offering of the services are deducted.

## Gross Profit Margin Calculator

 Net sales: Cost of goods sold: Gross profit margin:

600 total views, 2 views today

## Things involved in gross profit

If we come down to the point of breaking the gross profit or the various aspects of gross profit will be the assessment of the organization’s efficiency at the way they use not only the supplies but also the labour. Another important point to be remembered is that one can never mix the gross profit to be similar with the operating profit. The plain reason is that this operating profit means the earnings which are calculated before the time, interest as well as the tax have been deducted.

## What is the use of gross profit? And what is gross profit margin?

The best part of this gross profit is that an individual will be able to calculate gross profit margin with the help of gross profit & the expression used to denote gross profit is percentage. Besides this, the gross profit margin turns out to be one of the important sources when the profitability is to be measured. As with this measurement, not only the analysts but also the investors will be in a position to compare the other similar companies along with the companies as far as the overall industry is concerned.

$$gross\, profit\, margin\,=\,\frac{\,net\, sales\,-\, cost\, of\, the\, goods\, sold\,}{net\, sales} \times 100$$