What is Gross Margin?

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The Gross Margin on a product during a set time period and is always expressed as a percentage

 

Gross Margin is calculated by Net Sales - Cost ÷ Net Sales x 100

For example, if your Net Sales is £50 and your Cost is £30, then:

Net Sales (£50) - Cost (£30) ÷ Net Sales (£50) x 100 = 40% Gross Margin

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