Profit Margin Calculator
How much profit margin to make?
- Calculate the product's cost. This is what you paid to acquire or produce it.
- Decide your target profit margin as a percentage. This is the profit you want to make per dollar of revenue.
- Input the cost and margin percentage into the margin calculator.
- The calculator will determine the revenue needed to achieve that margin.
- To calculate margin percentage manually:
- Revenue - Cost = Profit
- Profit / Revenue = Margin Percentage
- For example, if the product cost is $30 and you want a 25% margin:
- Revenue is calculated as $30 / (1 - 0.25) = $40
- Profit is Revenue - Cost = $40 - $30 = $10
- Margin = Profit / Revenue = $10 / $40 = 25%