GPO Trading Calculator

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Gross Profit on Trading (GPO) ($):
Gross Profit Margin (GPM) (%):

 

 

About GPO Trading Calculator (Formula)

The GPO (Gross Profit on Trading) Calculator is a tool designed to estimate the gross profit and the gross profit margin based on the selling price and the cost of goods sold (COGS). The formulas used in the calculator are:

Gross Profit on Trading (GPO) Formula:

GPO=Selling Price−COGS\text{GPO} = \text{Selling Price} – \text{COGS}

Gross Profit Margin (GPM) Formula:

GPM=(GPOSelling Price)×100\text{GPM} = \left( \frac{\text{GPO}}{\text{Selling Price}} \right) \times 100

Components of the Formulas:

  1. Selling Price ($): The price at which goods are sold.
  2. Cost of Goods Sold (COGS) ($): The direct costs attributable to the production of the goods sold.

Calculation Steps:

  1. Calculate Gross Profit on Trading (GPO):
    • Subtract the cost of goods sold (COGS) from the selling price to get the gross profit.
  2. Calculate Gross Profit Margin (GPM):
    • Divide the gross profit by the selling price.
    • Multiply the result by 100 to get the percentage.

Example Calculation:

If the selling price is $200 and the cost of goods sold (COGS) is $150, the calculations would be:

  1. Gross Profit on Trading (GPO): GPO=200−150=50\text{GPO} = 200 – 150 = 50
  2. Gross Profit Margin (GPM): GPM=(50200)×100=25%\text{GPM} = \left( \frac{50}{200} \right) \times 100 = 25\%

So, the gross profit on trading would be $50, and the gross profit margin would be 25%.

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