Gross profit margin (GPM) formula

Tags: corporate finance financial analysis metric

Description of the Gross profit margin (GPM) formula

Formula for the calculation of a company's gross profit margin.

Formula

\[ GPM=\frac{\text{Revenues}-\text{Cost of goods sold}}{\text{Revenues}} \ \]

Additional information related to this formula

Related financial formulas

Net profit margin (NPM) • Operating profit margin (OPM)