The Gross Profit Margin % Formula:
Two Simple Steps:
Step 1: Figure out Gross Profit
Resale - Cost = Gross Profit
$12 (resale) - 7 (cost) = $5 Gross Profit
Step 2: Divide Gross Profit by Resale
(and multiply times 100 to get the percentage)
(Gross Profit / Resale) *100
Example:
$5 (Gross Profit) / $12 Resale = .4166
Then multiply by 100 to get the %
So .4166 x 100 = 41.66%
So your gross profit margin percentage is 41.66 %