Gross profit percentage formula Total sales Cost of goods sold Total sales 100 The money that is remaining after covering the COGS is used to service other operating expenses like sellingcommission expense general administrative expenses research development marketing expense and interest expense that appear further below in the income statement. Profit percentage Equation Net Sales Expenses Net Sales or 1 Expenses Net Sales So if the ratio of Expenses to Net sales could be minimized a higher profit could be achieved. Profit percentage is similar to markup percentage when you calculate gross margin.
Divide the result by revenue.
The formula for profit is very simple and it is expressed as the difference between the total sales or revenue and the total expenses. Calculate net profit for each company. This is the percentage of the cost that you get as profit on top of the cost. Convert the figure to a percentage by multiplying it by 100.