Margin Calculator
About This Tool
Our margin calculator helps businesses and individuals calculate key financial metrics such as profit margin, markup percentage, and sale price. These metrics are essential for pricing strategies, financial analysis, and business planning.
Select the calculation you need, enter the required values, and get instant results to help you make informed business decisions.
Key Terms Explained
Profit Margin
The percentage of revenue that exceeds the cost of goods sold. It measures how much out of every dollar of sales a company actually keeps in earnings.
Markup
The amount by which the cost of a product is increased to arrive at the selling price. It is expressed as a percentage above the cost.
Cost of Goods Sold (COGS)
The direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good.
Formulas Used
Profit Margin:
Profit Margin = ((Revenue - COGS) / Revenue) × 100%
Markup:
Markup = ((Price - COGS) / COGS) × 100%
Sale Price:
Price = COGS / (1 - (Desired Margin / 100))
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