Enter the cost of production in dollars ($):
Enter the final cost when selling products (revenue or final consumer price):
Calculation results:
Percentage margin (%) is:
Profit (gross profit) is equal to:
The markup (markup on the cost of production) is:
Calculator to determine the margin by cost of production and revenue?
Our portal will try to explain everything in simple words.
Cost of production of a product (%) — in our calculator, the cost of production of a product is understood as the total cost of production of a product, which includes the full costs of manufacturing a product, organizing a production process, and implementing it (delivery, advertising, etc.), that is, delivery of a finished product. for consumption on the market of the final product or service.
Margin (%) — the difference between the price and cost of production of goods and services (most often expressed as a percentage).
The cost of realization ($) (revenue or «price on the shelf») is the final cost of a product or service to a consumer (client), that is, the price for which you are ready to give your product or service.
Margin = (Cost of sales — Cost of production of goods) / Cost of sales) * 100, where
- margin in percentage (%)
- substitute selling price in dollars
- substitute the cost of production in dollars
Profit ($) (gross profit) is the difference between revenue and the cost of production of a product
Profit = Cost of realization — Cost of production of goods, where
- profit in dollars
- substitute selling price in dollars
- substitute the cost of production in dollars
The markup (%) is the difference between the cost of sale and the cost of production of a product or service required to cover full costs and make a profit (most often expressed as a percentage)
Margin = (Profit / Cost) * 100, where
- margin in percentage (%)
- substitute profit in dollars
- substitute the cost of production in dollars