# Total gross profit formula.asp

The three main profit margin metrics are gross profit (total revenue minus cost of goods sold (COGS) ), operating profit (revenue minus COGS and operating expenses), and net profit (revenue minus all expenses) means for each \$1 of revenue the company earns \$0.10 in net profit. The Gross Profit Margin formula is calculated by subtracting the cost of goods sold from net sales and dividing the difference by net sales. Generally, a gross profit margins calculator would rephrase this equation and simply divide the total gross profit dollar amount we mentioned above by the net sales.
Gross Profit is the total amount of revenue a company generates after selling its products and services, less the cost that was incurred in producing and selling those products and services. It is defined as the cost of sales/goods. The gross profit percentage formula is calculated by subtracting cost of goods sold from total revenues and dividing the difference by total revenues. Usually a gross profit calculator would rephrase this equation and simply divide the total GP dollar amount we used above by the total revenues. Both equations get the result. Gross profit percentage formula = Gross profit / Total sales * 100% It can be further expanded as, Gross profit percentage formula = (Total sales – Cost of goods sold) / Total sales * 100%