Gross Margin

Definition of ‘Gross Margin’

Gross margin is the difference between revenue and variable costs. It is the real income of a business.

Gross margin = Revenue – Variable Costs

Gross margin is sometimes referred to as gross profit.

Template Gross Margin Definition

The gross margin definition for use in the financial projections template is the difference between the revenue and the cost of sales.

At a product level it represents the difference between the selling price of your product and its purchase cost or its manufacturing cost.

Gross margin definition = Selling price – Purchase cost

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Gross Margin June 22nd, 2016Team

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