eCommerce Gross Profit Margin Calculator
Useful
Why it's useful to use
The Gross Profit Margin calculator is a crucial tool for eCommerce entrepreneurs to assess the profitability of their products. This metric tells you how much profit you make after accounting for the direct costs of producing and delivering goods. By understanding your gross profit margin, you can better price your products, manage production costs, and evaluate how efficiently you are running your business. A healthy gross profit margin is essential for covering operating expenses and making your business sustainable in the long run.
Formula
How the tool works
Gross Profit Margin is calculated by subtracting the cost of goods sold (COGS) from total revenue and then dividing the result by the total revenue. The result is multiplied by 100 to get a percentage. The formula is:
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