Gross Profit % (of Gross): Gross Margin Rate

Gross Profit % (of Gross) measures gross profit as a percentage of gross revenue. It shows your gross margin rate before discounts and refunds.

Formula

Gross Profit % (Gross) = Gross Profit ÷ Gross Revenue × 100

Formula Components

Metric	Definition
Gross Profit	Revenue minus cost of goods sold
Gross Revenue	Total revenue before discounts and refunds

Metadata
Type	Percentage
Data Source	Shopify
Aggregation	Ratio

Example

Your Shopify store has $60,000 in gross profit from $100,000 in gross revenue.

Metric	Value	Calculation
Gross Profit	$60,000	Revenue − COGS
Gross Revenue	$100,000	Before discounts/refunds
GP % (Gross)	60%	($60,000 ÷ $100,000) × 100

A GP % of 60% means you keep 60 cents of every dollar of gross sales after product costs.

How It Works

This metric calculates gross margin using gross revenue as the denominator. It shows your product margin before any promotional discounts or refunds are applied, giving you insight into your baseline product profitability.

When to Use

Scenario	Action
Product margin analysis	Understand base product profitability
Pricing strategy	Ensure adequate gross margin before promotions
Supplier negotiations	Track COGS impact on margins
Trend monitoring	Compare margins across periods

Metric	Relationship
Gross Profit	The numerator in this calculation
Gross Revenue	The denominator in this calculation
Contribution Margin %	Margin after all variable costs
COGS Gross Rate	COGS as percentage of gross revenue

See all Contribution Margin metrics →

⌘I

​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics