## What is the formula for gross profit?

Gross profit margin is calculated by subtracting cost of goods sold (COGS) from total revenue and dividing that number by total revenue. The top number in the equation, known as gross profit or gross margin, is the total revenue minus the direct costs of producing that good or service.

## How do I calculate gross profit percentage?

Divide your gross profit by the total costs of goods your company sells. In this example, divide $1.3 million by $3.3 million to get 0.3939. Multiply the result by 100 to convert the result to the gross profit percentage. In this example, multiply 0.3939 by 100 to find the gross profit percentage equals 39.39 percent.

## How do you find the gross price?

To calculate your gross price, you’ll need to consider all the costs that go towards acquiring your product. Because each product has its own set of associated acquisition costs, there’s no concrete formula to calculate this price. For example, your smart TV’s gross price included the sales price plus sales tax.

## How do you calculate gross profit on a balance sheet?

Gross Profit = Total Revenue – Cost of Goods Sold (COGS)

You pay $20 for various merchant fees, bank processing costs, and other expenses directly related to the cost of goods.