When calculating important values related to sales, or margin analysis, there are 5 key variables and 3 primary equations. If you know at least 2 values, and 1 value is a dollar value, this calculator can be used to solve for the other 3 unknow variables.
- Cost (C)($)
- Revenue (R)($) or selling price
- Gross Profit (P)($)
- Gross Margin (G)(%)
- Mark Up (M)(%)
- P = R - C
- M = P / C
- G = P / R
If you know at least 2 values, and 1 value is a dollar value, you can calculate the other 3 after some algebraic manipulation of the three equations. This calculator will calculate any three of the sales values based on any 2 inputs that you provide.
- Gross Profit = Revenue - Cost
- Markup = Gross Profit / Cost
- Gross Margin = Gross Profit / Revenue
* Revenue = Price (selling price)
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