Get insights delivered straight to your inbox.

Gross Margin Rate

What is gross margin rate?

Gross margin rate is a type of profit margin that expresses gross margin as a percentage: ((Gross Sales - COGS) / Gross Sales) x 100.

What my does gross margin rate tell me?

Your gross margin rate tells you the percentage of revenue that exceeds the cost of of goods you've sold. The higher the margin, the more effective you are at generating income for each dollar you spend.