Gross Profit Revenue Cost of Goods Sold beginaligned textGross Profit textRevenue - textCost of Goods Sold endaligned Gross Profit Revenue Cost of Goods Sold. Formula for Gross Profit. The formula for Gross Profit is quite straightforward.
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The gross profit on a product is computed as follows. The most common variation on gross profit is gross margin which represents what amount of every sale becomes gross profit. The basic components of the formula of gross profit ratio GP ratioare gross profit and net sales. Look up the companys total revenues on the income statement from the first date youre trying to compare.