Gross profit percentage tells us how much of sales income is gross profit. Gross profit is the sales amount of the cost of particular items that was sold. Profit will be gained whenever the selling price of one thing is greater than cost price.

Gross profit percentage is one of the way to evaluate financial performance of a person or company. It helps to see what percentage of their earning after costs is profit.

Related Calculators | |

Calculating Profit | Percentage off |

Calculation of Percentage | Difference Percentage |

Formula to find gross profit percentage:

**Gross profit** is calculated simply by subtracting the cost of goods from the net sales price.

**Gross Profit = Net Sales Price - Cost of Goods.**

To calculate Gross profit percentage, divide the Gross profit by the selling price in each category.To calculate each category's gross profit percentage, divide the average gross profit by the average selling price.

**Steps for Calculating Gross Profit Percentage:**

Step 1:Figure out gross profit for each category of product**.**

Step 2:Divide gross profit by selling price**.**

### Solved Examples

**Question 1: **If the cost of a fan is 3.30 dollar and sold at 5.90 dollar. Find the gross profit percentage.

** Solution: **

Given

Cost Price of a fan = 3.30

and selling price = 5.90

**Step 1:** Find Gross Profit

Gross Profit = Sell Price - Cost Price

= 5.90 - 3.30

= 2.60

Step 2:

Gross Profit Percentage = $\frac{Gross Profit}{Selling Price}$

= $\frac{2.60}{5.90}$

= 0.44 or

= 0.44 * 100

= 44%

**Question 2: **Calculate gross profit ratio from the following particulars:

** Solution: **

Cost of goods sold = Opening stock + Purchases - Closing stock

= 50,000 + 90,000 - 20,000

= 1,20,000

Gross profit = 1,66,000 - 1,20,000

= 46,000

Gross profit ratio = $\frac{Gross Profit}{selling Price}$ x 100

Gross profit ratio = $\frac{46,000}{1,66,000}$ x 100

= 27.71 %

**Question 3: **Stefen sold some particulars at 10,000 dollars. The cost price of that
particulars is 5,000 dollars. Find the gross profit percentage.

** Solution: **

Given

Cost Price of particulars = 5,000

and selling price = 10,000

**Step 1:** Find Gross Profit

Gross Profit = Sell Price - Cost Price

= 10,000 - 5,000

= 5,000

Step 2:

Gross Profit Percentage = $\frac{Gross Profit}{Selling Price}$

= $\frac{5000}{10000}$

= 0.50 or

= 0.50 * 100

= 50 %

**Question 4: **Janina buy a car in 5,000 dollar and she sold it at 11,500 dollar. Find the gross profit percentage.

** Solution: **

Given

Cost Price of a car = 5000

and selling price = 11500

**Step 1:** Find Gross Profit

Gross Profit = Sell Price - Cost Price

= 11500 - 5000

= 6500

Step 2:

Gross Profit Percentage = $\frac{Gross Profit}{Selling Price}$

= $\frac{6500}{11500}$

= 0.56 or

= 0.56 * 100

= 56%

To calculate Gross profit percentage, divide the Gross profit by the selling price in each category.To calculate each category's gross profit percentage, divide the average gross profit by the average selling price.

Step 1:

Step 2:

Given

Cost Price of a fan = 3.30

and selling price = 5.90

Gross Profit = Sell Price - Cost Price

= 5.90 - 3.30

= 2.60

Step 2:

Gross Profit Percentage = $\frac{Gross Profit}{Selling Price}$

= $\frac{2.60}{5.90}$

= 0.44 or

= 0.44 * 100

= 44%

Particulars |
Sales |
Opening Stock |
Purchases |
Closing Stock |

$ |
1,66,000 | 50,000 |
90,000 | 20,000 |

Cost of goods sold = Opening stock + Purchases - Closing stock

= 50,000 + 90,000 - 20,000

= 1,20,000

Gross profit = 1,66,000 - 1,20,000

= 46,000

Gross profit ratio = $\frac{Gross Profit}{selling Price}$ x 100

Gross profit ratio = $\frac{46,000}{1,66,000}$ x 100

= 27.71 %

Given

Cost Price of particulars = 5,000

and selling price = 10,000

Gross Profit = Sell Price - Cost Price

= 10,000 - 5,000

= 5,000

Step 2:

Gross Profit Percentage = $\frac{Gross Profit}{Selling Price}$

= $\frac{5000}{10000}$

= 0.50 or

= 0.50 * 100

= 50 %

Given

Cost Price of a car = 5000

and selling price = 11500

Gross Profit = Sell Price - Cost Price

= 11500 - 5000

= 6500

Step 2:

Gross Profit Percentage = $\frac{Gross Profit}{Selling Price}$

= $\frac{6500}{11500}$

= 0.56 or

= 0.56 * 100

= 56%

More topics in Gross Profit Percentage | |

Profit | Average Cost Price |

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