Gross Margin Calculator
Gross Margin Calculator
The gross margin of a product is measured by subtracting the cost of goods sold from the selling price. The cost of goods sold includes all costs associated with producing the goods or services sold by a company. Gross margin percentage is obtained by
dividing gross margin by sales revenue. Many companies offer multiple products, so properly understanding overall gross margin is often an exercise in understanding how various unit sales, price points and costs for each product or service contribute
to the overall business.
