Gross Profit Percentage = (Gross Profit ÷ Revenue) × 100
Gross Profit = Revenue – Cost of Goods Sold (COGS)
Substitute the gross profit formula into the percentage formula: [(Revenue – COGS) ÷ Revenue] × 100
Divide gross profit by total revenue
Multiply the result by 100 to get the percentage
Example: If Revenue = 10,000 and COGS = 6,000, Gross Profit = 4,000
Example: Gross Profit Percentage = (4,000 ÷ 10,000) × 100 = 40%