Calculate gross profit rate (gross profit percentage) from net sales and cost of goods sold, or solve for gross profit, sales or COGS from a rate.

Use sales and costs for the same period and currency.

Optional settings

Gross Profit Rate Formula

The following formula is used to calculate a gross profit rate.

GPR = (GP) / (S) × 100
  • Where GPR is the gross profit rate (%)
  • GP is the gross profit ($)
  • S is the total net sales ($)

To calculate a gross profit rate, divide the gross profit by the total net sales, then multiply by 100.

Gross Profit Rate Definition

A gross profit rate is a measure of the ratio of gross profit to total net sales displayed as a percentage.

Gross Profit Rate Example

How to calculate gross profit ratio?

  1. First, determine the gross profit.

    Calculate or measure the total gross profit of the business being analyzed.

  2. Next, determine the total net sales.

    Determine the total net sales during the same time period.

  3. Finally, calculate the gross profit rate.

    Choose Rate from gross profit & sales and enter the values from steps 1 and 2 to determine the gross profit rate (%).

FAQ

What is a gross profit rate?

A gross profit rate, also known as gross profit ratio, is the ratio of total gross profit to total net sales (revenue), expressed as a percentage.

What is gross profit?

Gross profit is net sales minus cost of goods sold (COGS), before operating expenses, interest, and taxes.