How To Calculate Gross Profit
In this 5-minute small business class online, you’ll learn how to calculate gross profit.
Cost: Free
Recommended Pre-Requisite Classes: How To Calculate Cost of Goods
Instructor: Jennifer Croft
Please note: You may have to raise the volume on your computer or phone to be able to clearly hear the video.
Description
In this 5-minute, online class, you’ll learn how to calculate gross profit (GP) and cost of goods (COG), and the difference between the two. You’ll find out what to include in your cost of goods and how to calculate gross profit percentage. You’ll also discover how to improve your gross profit margins, by lowering your cost of goods and/or raising prices. Small business owners often confuse “gross profit,” “net profit,” and “net profit after taxes” – you’ll learn the difference between these three types of profit.
Related Classes
Here are other small business classes online that relate to How To Calculate Gross Profit:•How To Calculate Cost Of Goods (COG)
•How To Calculate Net Profit
•How To Calculate Breakeven
Worksheets
The following small business worksheets will be helpful for you to use:•Cost Of Goods (COG) Forecast – 1 year
•Gross Profit (GP) Forecast – 1 year
•Breakeven – By Gross Profit $
•Breakeven – By Gross Profit %
Next Steps
After taking this class, here are some good next steps you can take:•Calculate the gross profit for your top-selling products (at least 5 products).
•Brainstorm ways to lower your cost of goods on some or all of your products.
•Consider implementing a price increase on some or all of your products.