Enter the total gross profit and total net sales into the calculator to determine the gross profit rate.

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## 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 ($)
- S is the total sales ($)

## Gross Profit Rate Definition

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

## Gross Profit Rate Example

How to calculate gross profit ratio?

**First, determine the gross profit.**Calculate or measure the total gross profit of the business being analyzed.

**Next, determine the total net sales.**Determine the total net sales during the same time period.

**Finally, calculate the gross profit rate.**Plug the values from steps 1 and 2 into the calculator to determine the gross profit rate (%).

## FAQ

**What is a gross profit rate?**

A gross profit rate, also known as gross profit ratio, is a ratio of the total gross profit to the total sales.

**What is gross profit?**

A gross profit is a total profit after expenses have been paid.