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If you know the cost of stocking the goods you sell and your selling price, stay on the Profit Margin tab and enter these figures. The calculator will return your profit margin as a percentage and as a dollar amount, and also your markup as a percentage.
If you know your desired profit margin but need help setting the price, choose the Desired Profit Margin tab, enter the cost of stocking the goods and the desired profit margin as a dollar sum or as a percentage, and choose Profit (if you entered a dollar sum) or Margin (for percentages) from the dropdown menu. The calculator will return your ideal selling price and the percentage markup.
➔ TIP: Select your industry from the dropdown menu to compare your results with industry norms.
How to calculate your current profit margin (gross or net).
You can calculate your current profitability as a gross profit margin or net profit margin. Each has different uses within a business.
Gross profit margin is the money you make when subtracting the cost of producing or sourcing the goods or services you sell from your revenue.
This figure helps you identify and compare the potential of
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