Calculate gross profit margins

Gross profit margin is the percentage of each sale you keep after the cost of delivering it. It's the clearest measure of whether your pricing actually works — and a low margin means you're busy but broke.

Do this

1. For a product or job, take its price and subtract what it cost to deliver.
2. Divide that gross profit by the price to get the margin %.
3. Do it for your main offers and compare them.
4. Raise prices or cut costs on anything with a thin margin.

Gross Margin Formula

Gross Margin % = (Price − Cost to Deliver) ÷ Price × 100

Example: Price: $280 Cost to deliver: $200 Gross profit: $80 Margin: 80 ÷ 280 = 29%

Compare margins across your offers. The high-margin ones are where you should focus your selling — the thin ones need a price increase or lower costs.