# Setup prices by margin

Setup prices by margin is a tool that helps a business to setup the selling price and determine the profit and the markup percentage for a product or a group of products sold based on the purchase price and the profit margin.

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

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

## Definitions and terms used

• 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