Three free calculators for different margin calculating purposes: product profit margin calculation, stock trading margin calculation, and currency exchange. The gross profit margin expresses your profits as a percentage of the total sales revenues generated. This percentage allows you to compare the profits of. Gross margin defined is Gross Profit/Sales Price. All items needed to calculate the gross margin percentage are found on the income statement.
How to calculate Gross Profit (aka Gross Margin) However, margin uses price as the divisor. For a retailer it will paypall their markup over wholesale. Gross Margin Definition American Express: So, how do we determine the selling price given a desired gross margin? Alternatively, if you want to calculate your sales margin for the entire year, use your total cost of goods sold. Divide the net profit by the total revenues to calculate the sales margin.