Definition: Percent of profit from revenue sales.

Note: Only calculated for products that have a cost associated with it.

Equation: Total Profit/Total Revenue or Total Gross Margin/Total Revenue

Example: Retailers can use Gross Margin Percent to better understand the relationship between profit and revenue while also shedding light on costs. Looking at the example snip below we can see that the Gross Margin Percentage of 49.9% is made by profit (defined as sum(revenue - cost)) being $11.3K over revenue (defined as sum(base price - discounts)) of $22.6K. This metric is a great one to follow through time as well.