How do you calculate gross profit margin?

Answer by  anon88 (166)

The calculation for gross profit margin is the difference between revenue and cost, stated as a percentage. Divide the gross profit by the sales to get gross profit margin. Example: $100 in sales minus $25 in costs is $75 gross profit. 75/100 = .75, or 75% gross profit margin.

Answer by  Colemanbunny (231)

To calculate the gross profit margin you take Gross Profit ÷ Total Revenue. Let's say you own Murphy's horses, a company that rents kids pony rides. Your gross profit is 162,084 which you divide by the total revenues of 405,209. 162,084 gross profit ÷ $405,209 total revenue = 0.40