Profit Margin Calculator to Use Anywhere
Use this profit margin calculator anywhere to calculate your target revenue, max cost or expected profit margin
Calculate Needed Revenue to Hit Desired Profit Margin
Margin calculator - cost + margin
Cost: ${formtext: name=cost; default=100}
Margin: {formtext: name=margin; default=20; cols=4}%
Revenue: {=revenue; format=$,.2f}{revenue=cost/(1 - margin/100)}
Profit: {=profit; format=$,.2f}{profit=revenue-cost}
{formtoggle: name=Show graph; default=yes} {image: https://quickchart.io/chart/chart?width=300&height=150&v=3&c={ type: 'bar', data: { labels: ['Revenue', 'Cost', 'Profit'], datasets: [{ data: [{=revenue}, [{=profit},{=revenue}],{=profit}], backgroundColor: ['rgba(65,105,225)','rgba(255, 0, 0)','rgba(124,252,0)']},],}, options: {plugins: {legend: {display: false,},},scales: {y: {ticks: {beginAtZero: true,},},},},} }{endformtoggle}
{formtoggle: name=Show graph; default=yes} {image: https://quickchart.io/chart/chart?width=300&height=150&v=3&c={ type: 'bar', data: { labels: ['Revenue', 'Cost', 'Profit'], datasets: [{ data: [{=revenue}, [{=profit},{=revenue}],{=profit}], backgroundColor: ['rgba(65,105,225)','rgba(255, 0, 0)','rgba(124,252,0)']},],}, options: {plugins: {legend: {display: false,},},scales: {y: {ticks: {beginAtZero: true,},},},},} }{endformtoggle}
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Given your cost of goods sold (COGS or simply Cost), what should be your revenue to hit a target profit margin? Profit margin equals profit divided by revenue, or revenue minus cost divided by revenue:
profit margin = profit / revenue = (revenue - cost) / revenue
This means that the cost is revenue times 1 minus your profit margin:
revenue * (1 - profit margin) = cost
Which means that your revenue is equal to your cost divided by 1 minus the profit margin.
revenue = cost / (1 - profit margin)
Plug your desired profit margin and expected costs and you'll get the needed revenue.
