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Profit Margin

Calculates gross profit margin from price and cost.

Interactive inputs coming — use the formula and example below.

Rechenbeispiel

Selling at $100 with $60 cost is a 40% margin.

So funktioniert's

  • Use the formula below with your own figures.

Die Formel

Margin = (price − cost) ÷ price × 100%.

Rechenbeispiel

Selling at $100 with $60 cost is a 40% margin.

Häufige Fragen

Margin vs markup?

Margin is on price; markup is on cost.

What's healthy?

It varies widely by industry.

Tipps

  • Know your break-even before scaling spend.
  • Separate margin from markup when pricing.
  • Discount future cash flows to value projects.

Begriffe

Break-even
Where revenue covers costs.
Margin
Profit as a percent of price.
NPV
Discounted value of future cash flows.