Product Margin & Pricing Tool
Calculate your product's gross margin or determine the optimal selling price based on your desired margin. This flexible tool helps you make smart pricing decisions to ensure profitability.
Set prices that ensure every sale contributes to your bottom line.
Work backwards from your profit goals to find the right price point.
Instantly see the gross profit and margin for any of your products.
Enter Cost and EITHER Selling Price OR Desired Margin.
Results
Enter values and click Calculate to see results
Understanding Margin & Pricing
Gross Margin: This is the difference between revenue and the cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage. It is a key indicator of a product's profitability.
Formula: Gross Margin % = ((Selling Price - COGS) / Selling Price) × 100
Markup vs. Margin: It's crucial not to confuse markup and margin. Markup is the amount by which the cost of a product is increased in order to derive the selling price (e.g., cost + markup = price). Margin is always a percentage of the selling price. This calculator focuses on Gross Margin, which is the more common and powerful metric for financial health.
Frequently Asked Questions
Need Help Optimizing Your Hospitality Business?
I help businesses grow through smarter SEO - let’s chat, free of charge.
Get Free SEO Consultation