Margin Calculator
Profit Margin: 0.00%
Understanding Profit Margin
What is a Profit Margin?
A profit margin measures the percentage of revenue that exceeds the cost of goods sold (COGS). It is an important metric for businesses to assess their profitability.
Why is Margin Important?
Calculating profit margin helps in:
- Determining pricing strategies.
- Understanding profitability.
- Improving financial decision-making.
Formula for Margin Calculation
The formula for margin calculation is:
Margin (%) = ((Selling Price - Cost Price) / Selling Price) * 100
Example Calculation
If a product costs $50 and is sold for $100:
Margin = ((100 - 50) / 100) * 100 = 50%
Final Thoughts
By using this margin calculator, businesses can make informed pricing decisions and maximize profitability effectively.
