how is margin for a product calculated
Gross Profit Margin = (Net Sales - Cost of Goods Sold) Ã· Net Sales. Example. A company makes $4,000 selling goods that cost $3,000 to produce. Its gross profit margin is 4000â30004000=14{\displaystyle {\frac {4000-3000}{4000}}={\frac {1}{4}}}, or 25%.