Gross Profit Percentage

Formal

Another term for Margin. Describes the profit on a sale, or the difference between the Sales Price and Cost of Manufacture. Eg Sales price $15, Cost of Manufacture $10, then Margin = 33% being the $5 profit divided by the $15 Sales Price. NOT the same as Mark Up (50%).

Real-world Example

A retailer sells a product for $100 that cost $60 to buy in. Its gross profit percentage is 40% - the proportion of each sale left after direct product costs, before overheads like rent and salaries.