Gross Profit Margin given Revenue and Cost of Goods Sold Solution

STEP 0: Pre-Calculation Summary
Formula Used
Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue
GPM = (R-COGS)/R
This formula uses 3 Variables
Variables Used
Gross Profit Margin - Gross Profit Margin is the total gross profit compared to your net sales.
Revenue - Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.
Cost of Goods Sold - The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company.
STEP 1: Convert Input(s) to Base Unit
Revenue: 780000 --> No Conversion Required
Cost of Goods Sold: 40000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
GPM = (R-COGS)/R --> (780000-40000)/780000
Evaluating ... ...
GPM = 0.948717948717949
STEP 3: Convert Result to Output's Unit
0.948717948717949 --> No Conversion Required
FINAL ANSWER
0.948717948717949 0.948718 <-- Gross Profit Margin
(Calculation completed in 00.004 seconds)

Credits

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4 Business Gross Profit Margin Calculators

Business Gross Profit Margin given Revenue and Cost of Goods Sold
Go Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue
Gross Profit Margin given Revenue and Cost of Goods Sold
Go Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue
Business Gross Profit Margin given Gross Profit and Sales
Go Gross Profit Margin = Gross Profit/Sales*100
Gross Profit Margin given Gross Profit and Sales
Go Gross Profit Margin = Gross Profit/Sales*100

Gross Profit Margin given Revenue and Cost of Goods Sold Formula

Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue
GPM = (R-COGS)/R

How to Calculate Gross Profit Margin given Revenue and Cost of Goods Sold?

Gross Profit Margin given Revenue and Cost of Goods Sold calculator uses Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue to calculate the Gross Profit Margin, Gross Profit Margin given Revenue and Cost of Goods Sold is the total gross profit compared to your net sales when the value for revenue and cost of goods sold is provided. Gross Profit Margin is denoted by GPM symbol.

How to calculate Gross Profit Margin given Revenue and Cost of Goods Sold using this online calculator? To use this online calculator for Gross Profit Margin given Revenue and Cost of Goods Sold, enter Revenue (R) & Cost of Goods Sold (COGS) and hit the calculate button. Here is how the Gross Profit Margin given Revenue and Cost of Goods Sold calculation can be explained with given input values -> 0.948718 = (780000-40000)/780000.

FAQ

What is Gross Profit Margin given Revenue and Cost of Goods Sold?
Gross Profit Margin given Revenue and Cost of Goods Sold is the total gross profit compared to your net sales when the value for revenue and cost of goods sold is provided and is represented as GPM = (R-COGS)/R or Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue. Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers & The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company.
How to calculate Gross Profit Margin given Revenue and Cost of Goods Sold?
Gross Profit Margin given Revenue and Cost of Goods Sold is the total gross profit compared to your net sales when the value for revenue and cost of goods sold is provided is calculated using Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue. To calculate Gross Profit Margin given Revenue and Cost of Goods Sold, you need Revenue (R) & Cost of Goods Sold (COGS). With our tool, you need to enter the respective value for Revenue & Cost of Goods Sold and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Gross Profit Margin?
In this formula, Gross Profit Margin uses Revenue & Cost of Goods Sold. We can use 3 other way(s) to calculate the same, which is/are as follows -
  • Gross Profit Margin = Gross Profit/Sales*100
  • Gross Profit Margin = (Revenue-Cost of Goods Sold)/Revenue
  • Gross Profit Margin = Gross Profit/Sales*100
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