# 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).

## 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

Terms of use

1. Complementarily, in order to setup prices by margin for your business, we offer a calculator free of charge. However, we appreciate a donation if you value our tools and services.

2. You may link to these calculators from your website as long as you give proper credit to

C. C. D. Consultants Inc. and there exists a visible link to our website.

3. Although C. C. D. Consultants Inc.'s personnel has verified and validated the Setup prices by margin calculator, C. C. D. Consultants Inc. is not responsible for any outcome derived from its use. The use of Setup prices by margin calculator is the sole responsibility of the user and the outcome is not meant to be used for legal, tax, or investment advice.