Gross Profit = Sales Revenue – Cost of Goods Sold
GP Percentage = (Gross Profit ÷ Sales Revenue) × 100
GP Percentage = ((Sales Revenue – Cost of Goods Sold) ÷ Sales Revenue) × 100
Example: If Sales Revenue = 1,000 and Cost of Goods Sold = 600
Gross Profit = 1,000 – 600 = 400
GP Percentage = (400 ÷ 1,000) × 100 = 40%