# How do you calculate gross profit percentage in accounting?

1

Asked By: Gertrude Kerluke

Date created: Sat, May 15, 2021 5:59 AM

Date updated: Fri, Jun 24, 2022 3:25 PM

Content

## Top best answers to the question «How do you calculate gross profit percentage in accounting»

A company's gross profit margin percentage is calculated by **first subtracting the cost of goods sold (COGS) from the net sales (gross revenues minus returns, allowances, and discounts)**. This figure is then divided by net sales, to calculate the gross profit margin in percentage terms.