How to calculate gross margin

 Gross margin is calculated by subtracting the cost of goods sold (COGS) from total revenue (sales). Here's the formula:

Gross Margin = Total Revenue - Cost of Goods Sold (COGS)

You can express it as a percentage by dividing the gross margin by total revenue and multiplying by 100:

Gross Margin Percentage = (Gross Margin / Total Revenue) * 100

To calculate gross margin, you'll need to know the total revenue from your sales and the cost of goods sold, which includes expenses directly related to producing or purchasing the products you sell. Subtracting COGS from total revenue gives you the gross profit, and expressing it as a percentage helps you understand the profitability of your business