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Use the free Margin Calculator to:
- Determine how much profit your business is making from its sales
- Set prices that cover costs and generate profit to ensure that your business remains profitable
- Identify and control high costs within the business
- Detect areas where your business might be losing money
- Compare with industry standards to maintain competitiveness
Cost
Simply input the price cost of the product. This might include production costs, purchase price, overhead costs, unit cost, and cost of goods sold (COGS).
Margin
In this field please insert your desired profit margin percentage.
Example:
- Enter the cost price, i.e. $40
- Define the desired margin percentage, i.e. 20%
- Let the Margin Calculator calculate: Revenue and Profit.
Additional tips:
- To calculate gross profit margin, insert gross values. To calculate net profit margin, insert net values.
Profit Margin
The percentage of revenue that represents profit after all expenses, including operating costs and taxes, have been deducted.
Gross Margin
The percentage of revenue that exceeds the cost of goods sold (COGS), indicating profitability before operating expenses are deducted.
Gross Profit
The difference between revenue and the cost of goods sold (COGS), representing the amount of money left over after deducting the direct costs of producing goods.
Markup
The difference between the selling price of a product or service and its cost, expressed as a percentage or a fixed amount.
Net Sales
Total sales revenue minus any returns, allowances, and discounts.
Net Income
The total amount of profit remaining after all expenses, including operating costs, taxes, interest, and other deductions, have been subtracted from revenue.
Operating Profit Margin
The ratio of operating income (or operating profit) to revenue, indicating the efficiency of a company’s core operations in generating profit.
Markup Calculator
A tool used to determine the selling price, markup percentage, or gross profit margin based on cost and desired profit margin.
Markup CalculatorWhat’s the difference between revenue and profit?
Revenue is the total amount of money generated from sales, while profit is the amount remaining after all expenses, including costs, taxes, and operating expenses, have been deducted from the revenue.
What’s the difference between gross profit margin and net profit margin?
Gross profit margin measures the percentage of revenue that exceeds the cost of goods sold, while net profit margin measures the percentage of revenue remaining after all expenses, including operating costs, taxes, and interest, have been deducted.
What is the formula for profit margin from gross profit?
The profit margin formula for calculating profit margin from gross profit is: (Gross Profit / Revenue) * 100.
How do you calculate a margin of a product?
To calculate a product’s margin, subtract the cost of producing or acquiring the product from its selling price, divide the result by the selling price, and multiply by 100.
How can I differentiate between gross margin percentage and profit percentage?
Gross margin percentage measures the profitability of a product before operating expenses, while profit percentage reflects overall profitability after deducting all expenses.