Business

Gross Margin

Revenue minus cost of goods sold, divided by revenue, expressed as a percentage. Gross margin shows how efficiently a company produces goods relative to selling price.

Related Terms

Profit Margin
Net Margin
Cost of Goods Sold (COGS)

Related Calculators

Profit Margin Calculator
Markup Calculator

Understanding Gross Margin

Gross Margin is a key concept in business. Understanding this term helps you make more informed financial decisions. Use our related calculators above to see how gross margin affects your specific situation.