Profit Margin Calculator to Use Anywhere
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.
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