Margin Calculator

Formula

To calculate the Margin (M):

\[ M = \left( \frac{GP}{ROGS} \right) \times 100 \]

Where:

$M$ is the Margin (%)
$GP$ is the Gross Profit ($)
$ROGS$ is the Revenue of Goods Sold ($)

What is Margin?

Margin is the percentage of sales revenue that exceeds the cost of goods sold (COGS). It is calculated by dividing the gross profit by the revenue of goods sold and then multiplying by 100 to express the result as a percentage. Margin is an important metric for understanding the profitability of a product or service.

Example Calculation 1

Let's assume the following values:

Gross Profit ($GP$) = $50
Revenue of Goods Sold ($ROGS$) = $100

Using the formula:

\[ M = \left( \frac{50}{100} \right) \times 100 = 50 \% \]

The Margin is 50%.

Example Calculation 2

Let's assume the following values:

Gross Profit ($GP$) = $75
Revenue of Goods Sold ($ROGS$) = $150

Using the formula:

\[ M = \left( \frac{75}{150} \right) \times 100 = 50 \% \]

The Margin is 50%.