Profit Margin & Markup Analysis
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).
Profit Margin & Markup Analysis is part of the Online price analysis, complements of our consulting team.
- Complementarily, in order to do the Profit Margin & Markup Analysis for your business, we offer a calculator free of charge.
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- Although C. C. D. Consultants Inc.'s personnel has verified and validated the Profit Margin & Markup Analysis calculator, C. C. D. Consultants Inc. is not responsible for any outcome derived from its use. The use of Profit Margin & Markup Analysis calculator is the sole responsibility of the user and the outcome is not meant to be used for legal, tax, or investment advice.
Definitions and terms used in Profit Margin & Markup Analysis
- The name or the SKU of the product.
- The number of units expected to be purchase and/or sold.
- Purchase Price
- The total cost of the product (per unit).
- Selling Price
- price that a unit should be sold for.
- 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
- 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