diff --git a/erpnext/projects/doctype/project/project.py b/erpnext/projects/doctype/project/project.py
index 4fc1dac57cc..5b7c4245e6b 100644
--- a/erpnext/projects/doctype/project/project.py
+++ b/erpnext/projects/doctype/project/project.py
@@ -308,6 +308,8 @@ class Project(Document):
 		self.gross_margin = flt(self.total_billed_amount) - expense_amount
 		if self.total_billed_amount:
 			self.per_gross_margin = (self.gross_margin / flt(self.total_billed_amount)) * 100
+		else:
+			self.per_gross_margin = 0
 
 	def update_purchase_costing(self):
 		total_purchase_cost = calculate_total_purchase_cost(self.name)