Gross profit percentage is the percentage of money you’ve made from selling a good or service after you subtract the cost of producing that good or service.

Gross profit percentage is a metric analysts use to assess a company’s financial health by calculating the amount of money left over from product sales after subtracting the COGS.

**Formula to calculate gross profit percentage.**

Gross profit is the difference between the COGS and total sales.

**Example:**

Company X made a gross profit of $ 400,000 on a certain financial year, the total sales for that year was $ 700,000. Calculate the gross profit percentage.

Thus, the gross profit percentage of the company is 57.1%.