This is the percentage of money that the company makes from selling goods or services after subtracting the costs of producing them. B5 - C5 B5. The formula for gross margin percentage is as follows.
The profit equation is.
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 allowances and discounts. In the example shown the formula in cell D5 is. Gross profit percentage formula Total sales Cost of goods sold Total sales 100. Margin 100 revenue - costs revenue.