This Profit Margin Calculator can help you determine the selling price for your products to achieve a desired profit margin - especially useful for retail margin calculation. By entering the wholesale cost, and either the markup or gross margin percentage, we calculate the required selling price and gross margin. Enter up to 10 products and press the "view report" button for a printable version of the results. Use in conjunction with the Break Even Point/Analysis.
This profit margin calculator helps businesses and retail stores effectively price their products and to understand the relationship between the mark-up over wholesale price.
Profit margin ratio - A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.
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%.
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