Gross Margin Percentage

Definition of ‘Gross Margin Percentage’

Gross margin percentage is the difference between revenue and variable costs expressed as a percentage of revenue.

Gross margin percentage definition = (Revenue – Variable Costs) / Revenue x 100%

Gross margin percentage is sometimes referred to as gross profit percentage or gross margin rate.

Template Gross Margin Percentage Definition

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

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

Gross margin percentage definition = (Selling price – Purchase cost) / Selling price x 100%

Learn a new Financial Projections Template Term

Random financial projection terms for you to discover.

Link to this page

Click in the box and paste the link to your site.

Return to the Dictionary

Gross Margin Percentage December 19th, 2015Team

You May Also Like