What is Gross Profit?
Gross profit definition: gross profit is the amount of money a company earns from sales after the cost of doing business.
Gross profit is calculated once costs including – but not limited to – the following have been deducted:
- Advertising
- Creation
- Delivery
- Employment
- Marketing
These costs are typically estimated in the initial pricing of a product or service, but will often be recalculated based on the actual number of sales made.
A simple example would be:
- Nike sells a training t-shirt for $20
- $12 is required to fund the creation and marketing
- Nike earns a gross profit of $8 per shirt
Popularity of the term Gross Profit
Concept related to Gross Profit
Additional resources about Gross Profit
Loomly is the ultimate Brand Success platform that helps your marketing team manage, nurture and amplify your communication on social media. Start your 15-day free trial now.
