Calculator™ © - Free Online Calculators

Online Calculators since 2009

- Annual Salary Sacrifice Calculator
- Average Quarterly Balance Calculator
- Residual Value Calculator
- Discount Factor Calculator
- Car Loan Calculator
- Mortgage Calculator 2021
- Accounting Rate of Return Calculator
- Cost of Goods Sold Calculator
- Creditor Days Calculator
- Bank Reconciliation Calculator
- US Treasury Bill Calculator [ T-Bill Calculator ]

Use the Margin Calculator to calculator the gross margin after sales

- Enter Cost Price
- Enter Selling Price
- Enter Number of Units

Gross Margin, Gross Profit per unit and Total Gross Profit are simple calculations. You need to know your cost price (also referred to as item/unit purchase price) and the selling price (also referred to as revenue).

**Gross Margin calculation:** *selling price / cost price = gross margin*

**Gross Profit per unit calculation:** *selling price - cost price = gross profit per unit*

**Total Gross Profit calculation:** *gross profit per unit * number of units = total gross profit*

Margin Calculation is used to calculate profit from sales, that is the margin (difference) between the costs and sale price.

Costs vary and should include all operational costs (logistics, staff, resource etc.). Do not make the mistake of using your purchase cost as the cost of the product as this does not include your time and additional operational costs required to run your business. With larger businesses, it can be difficult to define a true operational cost. Larger businesses and operations prefer to use a baseline margin, working on the knowledge that a 20% margin for example means approximately 8% profit after operational costs. Estimating is more common in large businesses whereas small companies tend to be more specific as every penny counts.

The selling price is the actual price paid per unit by the consumer / user of the product or service. The Selling price should always be higher that the cost price in order to make a profit. On occasion, companies will sell at less than cost (supermarkets do this frequently). This creates a negative margin and financial loss. Intentional financial losses are typically part of wider marketing campaigns designed to increase customer interest in a product or other associated products. Selling at less than cost can be a 'below the line' sales technique.

The number of units is the number of items to be sold. Say you have a bg of marbles, if you sell the bag as a whole it is one unit. If you open the bag and sell the marbles individually, then each of the marbles would become a unit.

Mark up percentage is the percentage difference between The Selling Price and the Cost Price. 100% markup is the same as doubling the price.

The Gross Profit Per Unit is the amount of profit made on a single item / service (a unit).

The Total Gross Profit is the profit after sale of all units / services.

You may also find the following Finance calculators useful.

- Treasury Bills
- Annual Percentage Yield Calculator
- Depreciation Units Production Calculator
- Yield To Call Calculator
- Mortgage Comparison Calculator
- Effective Cpm Calculator
- Discount Tire Calculator
- Percentage Depreciation Calculator
- Roi Calculator
- Home Equity Line Of Credit Calculator
- Capitalization Rate Calculator
- Present Value Of Cash Flows Calculator
- Credit Card Minimum Payment Calculator
- Vat Calculator
- Accounts Received Turnover Rate Calculator
- Creditline Transfer Apr Calculator
- Discounted Payback Period Calculator
- Amortization Schedule Calculator
- Weighted Average Cost Of Capital Calculator
- Layaway Plan Calculator