**How to Calculate Gross Profit Margin Percentage**

For

business gurus, check out this. The gross profit margin expresses your profits

as a percentage of the total sales revenues generated. This percentage allows

you to compare the profits of businesses of various sizes because the results

are measured as a percentage rather than in raw numbers. However, because

different industries have different norms, gross profit margin is hard to

compare between companies in different sectors. To calculate the gross profit

margin as a percent, you need to know the revenues and the cost of the goods

sold.

business gurus, check out this. The gross profit margin expresses your profits

as a percentage of the total sales revenues generated. This percentage allows

you to compare the profits of businesses of various sizes because the results

are measured as a percentage rather than in raw numbers. However, because

different industries have different norms, gross profit margin is hard to

compare between companies in different sectors. To calculate the gross profit

margin as a percent, you need to know the revenues and the cost of the goods

sold.

**Step 1**

Subtract the total costs of your goods from the revenues the sales

generate to find your gross profit. For example, if you purchase #100,000 of

goods and sell them for #120,000, you would subtract #100,000 from #120,000 to get a profit of #20,000

generate to find your gross profit. For example, if you purchase #100,000 of

goods and sell them for #120,000, you would subtract #100,000 from #120,000 to get a profit of #20,000

**Step 2**

Divide your gross profit by your total revenue generated. In this

example, you would divide #20,000 by #120,000 to get 0.17

example, you would divide #20,000 by #120,000 to get 0.17

**Step 3**

Multiply the result from Step 2 above by 100 to find the gross

profit margin percentage. Once your done with your calculation, the example,

you would be to simply multiply 0.17 by

100 to find that your gross profit margin which

equals 16.7% percent.

profit margin percentage. Once your done with your calculation, the example,

you would be to simply multiply 0.17 by

100 to find that your gross profit margin which

equals 16.7% percent.

## Calculator Use

Calculate the gross margin percentage, mark up percentage and

gross profit of a sale from the cost and revenue, or selling price, of an item.

gross profit of a sale from the cost and revenue, or selling price, of an item.

* Revenue = Selling Price