Gross Profit Margin = (Gross Profit ÷ Revenue) × 100
Gross Profit = Revenue – Cost of Goods Sold
Revenue = Total sales
Cost of Goods Sold = Direct costs of producing goods or services
Subtract Cost of Goods Sold from Revenue to get Gross Profit
Divide Gross Profit by Revenue
Multiply the result by 100 to get the percentage
Gross Profit Margin = [(Revenue – Cost of Goods Sold) ÷ Revenue] × 100