Gross Profit Margin Calculator (%)
Use this calculator to determine how much out of every cup you sell is Profit. Enter the number you get into "Profit Margin %" for the third field of the Profit Calculator at right.
How to Use the Gross Profit Margin Calculator
Cost of Goods Sold
Cost of one cup, one spoon and one napkin
Cost of Italian Ice to fill one cup
Example: 0.05 (one cup)
Profit Calculator ($)
This calculator will determine in dollars how much you will make in Total Sales per month, and how much of that will be Profit (in your pocket).
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How to Use the Profit Calculator
New Sales a Month
Number of cups you'll sell each day
Number of days you'll sell each month.
100 cups each day
x 15 days a month
1500 New Sales a Month
How do you use gross profit margin to make business decisions? Many business owners will use gross profit margin calculations to help them price their products, track changes over time, and even take a closer look at some of the various cost factors that go into the cost of goods sold number that is input into the calculation to arrive at the gross profit margin calculation.
Cost of Good/Service Definition
The cost of good or service is the total amount that you will be charging the customer for this particular good or service. Be sure to include the total amount that they will be charged, even if this amount includes extra fees, which are related to the good or service and do not have to be paid to someone else. As an example, you would not include the amount for tax in the total cost, since that amount must be sent to your tax department.
When thinking of new sales per month, you must think of all possible sales that will be generated for this particular good or service. Of course, this will be an estimate. Unless you are a brand new business, or this is a brand new product or service, you can probably use an estimate from a previous month. A better estimate might be to average the last several months to get an average of how many of this good or service you can expect to sell each month.
If you are a new business, or you are selling a new product, you will need to just make the best estimate you can. Remember, that this type of estimate may not be accurate. And, you will need to keep this in consideration when you see the calculation that is generated.
The profit margin is a percentage which tells how much of the amount charged to the customer is returned to you as profit.