Accounting glossary
What is gross margin?
Gross profit expressed as a percentage of revenue: (revenue − COGS) ÷ revenue. A 40% margin means 40 cents of every sales dollar survives the cost of the goods to fight overhead. Track it by product and by month; drift here is drift everywhere.
Example
Sell for $364.99 what cost you $250.00 and the gross profit is $114.99. As a margin that is $114.99 ÷ $364.99, or 31.5%.
Margin is always measured against the selling price, which is what separates it from markup.
In SeroBooks
Margin visibility is permission-gated — staff who should not see costs, don't. Margin calculator →