Financial Terms Glossary

Gross Profit Percentage


Another term for Margin. Describes the profit on a sale, or the difference between the Sales Price and Cost of Manufacture. Eg Sales price $15, Cost of Manufacture $10, then Margin = 33% being the $5 profit divided by the $15 Sales Price. NOT the same as Mark Up (50%).


See also Margin - it's the core profit on a deal. The Sales Price minus the cost price, expressed as a percentage. Eg, Sales Price $50, Cost Price $25 - then Gross Profit percentage is 50% ($25 divided by $50).

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