> For the complete documentation index, see [llms.txt](https://docs.roivenue.com/roivenue-resources/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/gross-margin.md).

# Gross Margin

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

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

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

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