1-844-696-6465 (US)        +91 77600 44484        help@dezyre.com

Gross Margin Formula



1
In wikipedia and investopedia they have given the formula for gross margin as (Revenue – Cost of goods sold) / Revenue. But the formula that is provided in the video is Revenue – Cost of goods sold. Could u please tell me which is rightly to be used.

1 Answer(s)


1

There are 2 terms here. Gross Profit and Gross Margin
Gross Profit is a number and the formula is Revenue - COGS
Gross Margin is the % and the formula is (Revenue-COGS)/Revenue

Your Answer

Click on this code-snippet-icon icon to add code snippet.

Upload Files (Maximum image file size - 1.5 MB, other file size - 10 MB, total size - not more than 50 MB)

Email
Password