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Profit Margin Calculator

Use this easy calculator to measure how much your products should sell for so you can save money and get the highest profits you could.

Amount Paid for Item

Enter an amount ($)
X

Item Markup

Markup %

Based on those numbers:

Sale Price
$
0
Your Profit
$
0
Gross Profit Margin
%
0

All it takes to develop an effective pricing strategy is a formula. You just need to know your markups and profit margins.

  • Since day one, we’ve promised you the tools to help you figure out the best way to run your business. ExpandCart’s simple profit margin calculator will help you calculate how much to sell your products for a good profit.
  • Just enter the gross cost of each product and the profit percentage you wish to generate with each sale.
  • Click ‘Calculate My Profit’ for the tool to scrunch the numbers using its profit margin formula in order to come up with the final price your products should be priced at.
  • Just like that, you can effectively price your products and start making a profit that makes sense off your sales.

FAQs

The profit margin indicates how profitable a product, service, or business is. It’s calculated in percentages, and the higher that percentage, the higher the business’s profitability.

You can use the free calculator to easily determine your gross profit margin. To calculate it on your own time, here’s a simple formula that will help: 

Subtract the cost of goods sold from the net sales (which is gross revenues minus returns, allowances, and discounts). Divide the figure you get by the net sales to calculate the percentage gross profit margin. 

Net sales – cost of goods sold = X

X / Net sales = % Gross profit margin

  1. Use 20% in its decimal form, which is 0.2
  2. Subtract that number from 1. In this case, 1 – 0.2 = 0.8
  3. Divide the original price of your product by 0.8
  4. The number you get is how much you should be charging to get a 20% profit margin

It’s easy!

To use ExpandCart’s free, simple profit margin calculator, just go to expandcart.com/en/profit-margin-calculator-tool/. Enter your numbers and then click ‘Calculate My Profit’ – that’s it!

It’s completely free to use ExpandCart’s profit margin calculator.

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