How to Calculate Gross Profit Margin A companys gross profit margin percentage is calculated by first subtracting the cost of goods sold COGS from the net sales gross revenues minus returns. Gross profit margin Gross profit Revenue Cost of goods sold Revenue. Cost of goods sold is 200000 leaving a gross.
To calculate the percentage profit you need to have the profit itself and the cost price.
Divide the gross profit by the firms total revenues and multiply the result by 100. Firstly note the total sales of the company which is easily available as a line item in the income statement. How to Calculate Gross Profit Margin A companys gross profit margin percentage is calculated by first subtracting the cost of goods sold COGS from the net sales gross revenues minus returns. Gross profit margin Gross profit Revenue Cost of goods sold Revenue.