Profit Margin Calculator: Set prices and analyze the profitability of products/services.

ByCarlos Alberto

The Profit Margin Calculator is an indispensable management tool that offers clarity on the financial health of each product or service offered. It allows you to analyze the profitability of your sales, assisting in strategic pricing and cost optimization. By entering the production or acquisition cost and the selling price, the calculator reveals the gross and net margins, indicating the profit percentage on each transaction. For you, Carlos, in managing your course platform, this tool is crucial to ensure that each course not only covers its costs but also generates the desired profit, allowing you to evaluate the effectiveness of your pricing strategies, identify areas for improvement, and drive the sustainable growth of your business.

Profit Margin Calculator (EN / ES / PT-BR)
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Profit Margin Calculator

Calculate margin, markup and target price
Choose which inputs you have. See tooltips for help.
Used to compute total gross profit.
Include direct costs: materials, direct labor, shipping.
Enter the sale price. If you provide a desired margin above, price will be computed.
Add fixed per-unit overheads (rent, marketing, fees) to see net margin.
Estimated taxes as a percent of price (e.g. sales tax, VAT where applicable).
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Gross Margin (per unit)
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Markup (per unit)
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Target Selling Price
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Gross Profit (total)
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Net Margin (after operational costs & taxes)
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Saved Scenarios

No saved scenarios.

How to use

  1. Select whether you have a selling price or a desired margin.
  2. Fill in Cost per unit and either Selling Price or Desired Margin.
  3. Use optional fields (operational costs, taxes) to compute net margin.
  4. Use the What-if sliders to test sensitivity; results update in real time.
  5. Save scenarios for later comparison or print/export the results.

Glossary

Gross Margin
The percentage of the final price that is profit before operational costs and taxes. ((Price - Cost) / Price) * 100.
Markup
The percentage added to the cost to set the price. ((Price - Cost) / Cost) * 100.
Target Selling Price
The price needed to reach a desired margin given the product cost.
Operational Costs
Fixed or variable per-unit overheads like rent, salaries and marketing allocated to each unit.
Taxes
Taxes applied to the sale price, expressed as a percentage of the price.
Disclaimer: This calculator provides estimates for educational purposes and does not replace professional financial or accounting advice.

About the Author: Carlos Alberto

Carlos Alberto is a Digital Marketing professional and AI enthusiast dedicated to developing his course platform. He leverages his expertise to simplify complex processes and empower students and professionals, helping them transform data into actionable insights through intelligent tools and accessible knowledge.

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