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Profit Margin & Markup Analysis

The Profit Margin & Markup Analysis is a tool that helps a business determine the profit, the profit margin and the markup percentage for a product or a group of products sold.

The average values are calculated as a weighted average (it takes in the consideration the quantity purchase and/or sold).

  Product Quantity Purchase Price Selling Price Markup Percent Profit Profit Margin
1. 0.0 % $ 0 0.0 %
2. 0.0 % $ 0 0.0 %
3. 0.0 % $ 0 0.0 %
4. 0.0 % $ 0 0.0 %
5. 0.0 % $ 0 0.0 %
6. 0.0 % $ 0 0.0 %
7. 0.0 % $ 0 0.0 %
8. 0.0 % $ 0 0.0 %
9. 0.0 % $ 0 0.0 %
10. 0.0 % $ 0 0.0 %
  Averages (0 products): $ 0.00 $ 0.00 0.0 % - 0.0 %
  Total Profit:   $ 0  
     
Note: This calculator is a JavaScript program. You must have JavaScript enabled in order to use it.

Definitions and terms used in the Profit Margin & Markup Analysis

  • Product: the name of the product.
  • Quantity: the number of units expected to be purchase and/or sold.
  • Purchase Price: the total cost of product (per unit).
  • Selling Price: the price that a unit should be sold for.
  • Markup: the amount added to the cost of a product to cover expenses and profit in fixing the selling price. Markup is equal to profit.
  • Markup percent: the ratio calculated as Markup divided by Total Cost. It measures how much is added to the cost in order to determine the selling price.

    Markup percent = (Total Revenues - Total Cost) / Total Cost x 100
  • Profit: the benefits from producing or selling a number of units.

    Profit = Total Revenue - Total Cost
  • Profit margin: the ratio of profitability calculated as Profit divided by Total Revenue. Profit margin is an indicator of a company's pricing policies and its ability to control costs. It measures how much out of every dollar of sales a company actually keeps in earnings (expressed as a percentage).

    Profit Margin = (Total Revenues - Total Cost) / Total Revenues x 100

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