Retail
Gross Margin %
The share of sales left after product cost.
Formula
(Sales − COGS) / Sales × 100
Required inputs
- Sales
- COGS
Worked example
₹1,00,000 sales − ₹60,000 COGS = 40% gross margin.
How to interpret it
Higher margin gives more room for operating costs, but compare within your category.
Common mistake
Do not divide gross profit by cost; that is markup.
When to use it
Review product pricing and category performance.