# Gross Margin Calculator

Gross Margin is the difference between the company's total sales revenue and cost of goods sold (COGS), divided by the revenue. The resultant value is expressed in percentage. It is calculated as net sales minus the cost of goods sold. It is a type of profit margin, a form of profit divided by net revenue. Higher the percentage, the company acquires more money on each value of sales. Use this Gross Margin Calculator to find the Gross margin percentage rate.

## Gross Margin Percentage Calculator | Gross Margin Rate

Gross Margin is the difference between the company's total sales revenue and cost of goods sold (COGS), divided by the revenue. The resultant value is expressed in percentage. It is calculated as net sales minus the cost of goods sold. It is a type of profit margin, a form of profit divided by net revenue. Higher the percentage, the company acquires more money on each value of sales. Use this Gross Margin Calculator to find the Gross margin percentage rate.

Code to add this calci to your website

#### Formula:

Gross Margin Percentage = ((a - b)/ a) x 100
**Where,**
a = Sales, Net of Returns
b = Cost of Goods Sold

#### Example

Find Gross Margin Percentage for sales returns of 400$ and cost of goods as 300$.

GMP = ((400-300)/400) x 100

= 25 %

Gross Margin Rate is just the percentage of the profitable selling price. Enter the sales, net of returns and cost of goods sold into the gross margin percentage calculator to find the rate.