Calculating Gross Profit Margin (GPM)

GPM is calculated as follows:

((Selling + Mark Up + Other Selling + Other Mark Up) - (Purchase + Purchase Other)) / (Selling + Mark Up + Other Selling + Other Mark Up) * 100    

Below are five examples of how GPM is calculated in each separate instance. These calculations do not include Sales Tax.

• Chair - This item only has a 35% merchandise Mark Up
• Table - This item only has a 35% merchandise Mark Up, plus $20 added to Other Selling
• Lamp - This item has a 35% merchandise Mark Up and Other Mark Up 
• Sofa - This item has $200 in Other Selling, plus a 35% merchandise Mark Up
• Rug - This item has $200 in Other Selling, plus a 35% merchandise Mark Up and Other Mark Up