Profit Margin Calculator

Our profit margin calculator will help you determine the best selling price for your products to attain your ideal profit margin. By entering the wholesale cost, and either the markup or gross margin percentage, we calculate the necessary selling price and gross margin. Enter up to 10 products and press the "View Report" button for printable results from the profit margin calculator.

This Financial Calculator requires SUN's JavaT Plug-in. If you see this message you will need to download SUN's JavaT Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing "Install ActiveX Control".

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For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC

Definitions

Product name: The name of the product for this entry line. This will appear on your printed report with your results.
Wholesale cost: Your total wholesale cost of the product that you are going to resell.
Markup percent: The percentage of your wholesale cost that the product's price is increased by to determine the selling price for your customers. For example, if you have a 50% markup on a product with a wholesale cost of $10, your selling price would be $15.00.
Selling price: This is the price you charge your customers. This amount is always calculated, based on either the entered gross margin percent or markup percent.
Gross margin dollars: This is the total gross margin, in dollars, for your product. For example, if you have a wholesale cost of $10 and a selling price of $15 dollars, your gross margin is $5.00.
Gross margin percent: This percentage is the gross profit for your product. For example, if you have a product that has a wholesale cost of $10 and a selling price of $15, your gross margin is 33.33%.

Profit Margin Calculator

A profit margin calculator is an online tool that helps a person calculate profit margins when a product that has a wholesale cost X is sold at a price y. Alternatively it can help to calculate the price to be sold at, assuming the mark up is fixed and the cost is known. Based on a simple backend calculation around cost, mark up percentage and the final price, it helps people arrive at the answer to their pricing queries easily and quickly.

For anybody in business, pricing products correctly is an important decision that goes beyond the profit margins for a given product. Pricing decisions often decide the volumes of the product, they can expect to sell. For example, the more exclusive and expensive the product, the fewer units it sells. On the other hand, mass products are usually very affordable like Mc Donald burgers. So when you change the price, you change the volume which means that profitability actually needs to be mapped over various price points depending on where it is the highest. While adding a mark up is a reasonably simple calculation, a profit margin calculator helps you calculate price changes for up to 10 products in seconds allowing you to compare various scenarios with ease. This is something that is essential in business decisions.

While these tools make life a lot easier for the user, it is important to know that Profit Margin Calculator and other such tools are basically backend algorithms to solve the ‘formula based math’ part of your problem. While people may know math, they may not always know the specific formula to get the answer that they need. Or they might not want to waste their time doing the math manually or in their heads. In other words, it means that these tools are not really giving and qualitative advice; they just help you reorganize and understand what you already know.