Included in the sales budgeting step will also be the margin budgeting.
Determining the margin is as important as estimating the sales, because it is the gross profit that pays the business expenses, not the revenue itself. it makes the biggest difference on your profitability if you deliver 100,000$ at 55% margin vs 100,000$ at 40% margin.
Furthermore, the gross margin determines the cost of goods sold (COGS), which will determine the purchasing budget.
Read More: Gross Margin Types
Once you have estimated your sales forecast/budget and your margin %, you will be able to calculate your gross profit by multiplying your sales by the margin %.
For example if your sales are 100,000$ at a 45% margin
Gross Profit = Sales x Gross Margin (%)
Gross Profit= 100,000 $ x 0.45 = 45,000 $