# Sales Margin Calculator

Our online gross profit margin rate calculator helps to compute the percentage rate of sales from the given net sales and returns. Gross profit margin or gross margin is the profitability ratio. It aids to evaluate the company's financial health and business model by identifying the total amount of money left over from revenues after accounting for the cost of goods sold (COGS). This sales margin calculator helps to find how effective a company can produce and sell its products.

## Gross Profit Margin Rate Calculator

Our online gross profit margin rate calculator helps to compute the percentage rate of sales from the given net sales and returns. Gross profit margin or gross margin is the profitability ratio. It aids to evaluate the company's financial health and business model by identifying the total amount of money left over from revenues after accounting for the cost of goods sold (COGS). This sales margin calculator helps to find how effective a company can produce and sell its products.

Code to add this calci to your website

#### Formula :

Gross Profit = Revenue - Cost of Goods Sold
Gross Profit Margin Ratio = (Gross Profit / Revenue) × 100
Revenue = Net Sales - Sales Returns

#### Example

**
Sales Margin Rate Calculation**

Calculate gross profit and its ratio for net sales of Rs. 5000, cost of sold goods as Rs. 500 and return of sales as Rs. 2500

Revenue = 5000 - 2500

= Rs. 2500

Gross Profit = 2500 - 500

= Rs. 2000

Gross Profit Margin Rate / Ratio = (2000 / 2500) × 100

= 80 %