Gross margin profit is a business metric used to measure how much profit is left after accounting for the cost of production. It gives an indication of the overall financial health of a business and its profitability. Gross margin profit is calculated by subtracting the cost of goods sold (COGS) from total revenue. The result is then divided by total revenue, giving an accurate representation of the company’s gross margin. Put simply, it allows you to see how much revenue remains once all costs associated with making and selling your product have been taken into account. Knowing this metric can help you better understand the financial reality of your business and make decisions that best suit your needs.