How do you calculate gross profit?

Gross profit is calculated by subtracting the cost of goods sold (COGS) from the total sales revenue from those goods.

Formula

Total sales revenue - Cost of goods sold

Why is gross profit important?

Gross profit is an important metric to track when analyzing the profitability of your brand and the efficiency of your personalization efforts in driving conversions and increasing Average Order Value (AOV).

We use cookies and other forms of website navigational information to offer you a better browsing experience, analyze site traffic, personalize content, and serve targeted advertisements.
Read about how we use cookies and how you can control them in our Privacy and Cookie Policy. If you continue to use this site, you consent to our use of cookies.

Accept Cookies