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Gross Profit Margin is the total gross profit compared to your net sales. Check FAQs
GPM=R-COGSR
GPM - Gross Profit Margin?R - Revenue?COGS - Cost of Goods Sold?

Gross Profit Margin given Revenue and Cost of Goods Sold Example

With values
With units
Only example

Here is how the Gross Profit Margin given Revenue and Cost of Goods Sold equation looks like with Values.

Here is how the Gross Profit Margin given Revenue and Cost of Goods Sold equation looks like with Units.

Here is how the Gross Profit Margin given Revenue and Cost of Goods Sold equation looks like.

0.9487Edit=780000Edit-40000Edit780000Edit
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Gross Profit Margin given Revenue and Cost of Goods Sold Solution

Follow our step by step solution on how to calculate Gross Profit Margin given Revenue and Cost of Goods Sold?

FIRST Step Consider the formula
GPM=R-COGSR
Next Step Substitute values of Variables
GPM=780000-40000780000
Next Step Prepare to Evaluate
GPM=780000-40000780000
Next Step Evaluate
GPM=0.948717948717949
LAST Step Rounding Answer
GPM=0.9487

Gross Profit Margin given Revenue and Cost of Goods Sold Formula Elements

Variables
Gross Profit Margin
Gross Profit Margin is the total gross profit compared to your net sales.
Symbol: GPM
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Revenue
Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.
Symbol: R
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Cost of Goods Sold
The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company.
Symbol: COGS
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other Formulas to find Gross Profit Margin

​Go Business Gross Profit Margin given Gross Profit and Sales
GPM=GPS100
​Go Business Gross Profit Margin given Revenue and Cost of Goods Sold
GPM=R-COGSR
​Go Gross Profit Margin given Gross Profit and Sales
GPM=GPS100

How to Evaluate Gross Profit Margin given Revenue and Cost of Goods Sold?

Gross Profit Margin given Revenue and Cost of Goods Sold evaluator uses Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue to evaluate the Gross Profit Margin, Gross Profit Margin given Revenue and Cost of Goods Sold is the total gross profit compared to your net sales when the value for revenue and cost of goods sold is provided. Gross Profit Margin is denoted by GPM symbol.

How to evaluate Gross Profit Margin given Revenue and Cost of Goods Sold using this online evaluator? To use this online evaluator for Gross Profit Margin given Revenue and Cost of Goods Sold, enter Revenue (R) & Cost of Goods Sold (COGS) and hit the calculate button.

FAQs on Gross Profit Margin given Revenue and Cost of Goods Sold

What is the formula to find Gross Profit Margin given Revenue and Cost of Goods Sold?
The formula of Gross Profit Margin given Revenue and Cost of Goods Sold is expressed as Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue. Here is an example- 0.948718 = (780000-40000)/780000.
How to calculate Gross Profit Margin given Revenue and Cost of Goods Sold?
With Revenue (R) & Cost of Goods Sold (COGS) we can find Gross Profit Margin given Revenue and Cost of Goods Sold using the formula - Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue.
What are the other ways to Calculate Gross Profit Margin?
Here are the different ways to Calculate Gross Profit Margin-
  • Gross Profit Margin=Gross Profit/Sales*100OpenImg
  • Gross Profit Margin=(Revenue-Cost of Goods Sold)/RevenueOpenImg
  • Gross Profit Margin=Gross Profit/Sales*100OpenImg
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