Gross Profit Margin Formula is an essential tool for any business looking to measure their financial performance. It’s a simple calculation that tells you the percentage of your total sales made up by gross profit—the money you have left after subtracting the cost of producing and selling items. To calculate it, divide your gross profit by your total revenue, then multiply the result by 100. Knowing your gross profit margin can help you make informed decisions about how to manage your resources and set goals for growth. By understanding how much of each sale ends up in your pocket, you can focus on what works and build a successful business.