The margin calculator enables you to calculate any of the main variables in the sales process.
Here’s our decoder to help you out:
Cost of goods sold (COGS): How much you paid to get the goods to make/create the product you sell
Revenue: How much customers spend to buy your product. The amount you sell the product for.
Profit: Your financial gain after costs are subtracted from revenues. (profit = revenue – costs)
Profit margin: the amount by which revenue from sales exceeds your costs ( (revenue – costs) / revenue) *100 )
Large profit margins are good and shows that you have “wiggle room” for taking risks in your business without completely killing it (because of course, we all make mistakes).