Understanding your profit margin is essential for any business. It tells you what percentage of your sales is actual profit after deducting the costs of the goods sold.
The standard formula to find your gross profit margin is:
Example: If you buy a product for $50 and sell it for $100. Your gross profit is $50. To find the margin: ($50 / $100) × 100 = 50% Profit Margin. Use our free tool above to instantly calculate your margins and price your products correctly!