# Gross margin

> Gross margin is a profitability metric, calculated as (Revenue − COGS) ÷ Revenue. Requires a COGS classification; omit the metric if there isn't one.

Source: https://lopifi.com/glossary/gross-margin
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is gross margin?** Gross margin is a profitability metric, calculated as (Revenue − COGS) ÷ Revenue.

## Formula

`(Revenue − COGS) ÷ Revenue`

## Note

Requires a COGS classification; omit the metric if there isn't one

- **Category:** Profitability
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** revenue, cost-of-revenue