Gross Margins = Parts + Pay / Revenue
- The outcome will be a decimal number. Move decimal to make whole number and subtract it from 100 aka 100% to get actual margin.
Example Gross Margins Calculation
- Parts/inventory = $250.00
- Tech Pay = $45.00
- Revenue = $730.00
$250.00 + $45.00 / $750.00 = .40
100 – 40 = 60% Margin
Calculating Gross Margins
- This Video goes over what gross margins are
- The easiest way to determine them
- How to quickly calculate them with a spreadsheet or calculator.