Definition
Gross profit and gross margin
Gross profit is revenue minus the cost of the goods sold; gross margin is that profit as a percentage of revenue.
Sell for $50 what cost $30: gross profit $20, gross margin 40%. Margin is the number to compare across products because it is independent of volume. Markup, the same $20 expressed against cost, is 67%; the two are often confused.
In Inventory Now
Every item and order shows profit and margin. Add expenses and it becomes True Profit.
Margin calculatorRelated terms
