# Gross Margin

**Gross margin** is calculated by dividing [gross profit](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/gross-profit) by [sales revenue](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/sales-revenue). This indicator shows the percentage(margin) of your [sales revenue](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/sales-revenue) that is [gross profit](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/gross-profit). 

Gross margin and gross profit are closely related: if you deduct [cost of goods sold](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/cost-of-goods-sold) from [sales revenue](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/sales-revenue), you have [gross profit](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/gross-profit). After that, if you divide [gross profit](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/gross-profit) by [sales revenue](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/sales-revenue), you have gross margin.

To maximize the insight you receive from this indicator, calculate it individually for each market segment. Use the findings to evaluate your company's market positioning.

### Parameters

**`Calculation:`**` ``grossMargin =` [`grossProfit`](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/gross-margin) `/` [`salesRevenue`](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/sales-revenue)

**`Example:`**` ``grossMargin = 11 600 / 52 000 ≐ 0,223`

**`Unit:`**` ``Number`