Gross profit margin (also gross margin, gross profit rate) indicates the value added by sales and is helpful in pricing and marketing planning.
$$Gross\; profit\; margin \mmlToken{mo}[linebreak="auto"]{=} \frac{Net\; sales - COGS}{Net\; sales}$$
COGS (cost of goods sold; cost of sales) - the cost of goods or services sold.
Gross Margin FAQ
What is gross margin?
It shows the share of sales left after cost of goods sold.
How do you calculate it?
Subtract COGS from net sales and divide by net sales.
