How do I calculate Gross Profit Margin

Your Gross Profit Margin % is the % of the revenue you gain from selling your product less the costs of producing that product.

Rules of thumb peg this number for food and beverage brands to be between 40-50%.

Achieving margins in this range is not always possible at the beginning of a brand’s journey. Please note, however, that the lower the gross margin you go to market with, the bigger trade-offs will have to happen between either funding your growth with large amounts of outside capital or cutting costs, normally costs around promoting and marketing your product, which could lead to a slower growth trajectory.