Use this formula to calculate gross profit:
Revenue (money made) from sales - Cost of materials = Gross profit
Use this formula to calculate net profit:
Gross profit - Cost of overheads = Net profit
Use this formula to calculate gross profit ratio:
(Gross profit ÷ Revenue) x 100 = Gross profit ratio %
Use this formula to calculate net profit ratio:
(Net profit ÷ Revenue) x 100 = Net profit ratio %