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Gross profit margin is the percentage of revenue paid to you by customers that is yours to keep. You can reinvest gross profits in marketing and sales to help you grow your business.

Calculate your gross margin by subtracting your Cost of Goods Sold (COGS) from your revenue, then dividing the result by your revenue. 

Knowing your Gross Margin will help you:

  • understand the scalability of your business model;
  • identify price points that maximise profit; and
  • improve cash flow management since you can put your gross margin towards other business costs.

LegalVision has created this free Gross Margin calculator to assist. Use it to input sales revenue and COGS to determine gross margin.

If you need help with your new business, our experienced startup lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page. 

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About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

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