Accounting Glossary

How to calculate gross profit margin

 

Gross profit margin (calculation)
Gross profit margin is gross profit divided by revenue, times 100.

Example of a gross profit margin calculation

Let’s say your business makes $20,000 by cleaning offices. It costs you $8000 to provide those services. Your gross profit is $12,000. Your gross profit margin is 60%.

Init popup
aperio-popup