Small Business calculator

Gross profit margin ratio calculator

Sales
Cost of Goods Sold
Gross Profit Margin Ratio
* Find the best interest rates in your area for more personalized results.
How to use this calculator
Your latest income statement holds the numbers you need to calculate your company's gross profit margin ratio.
  1. Fill in your net sales.
  2. Fill in your cost of goods sold.
  3. Press "calculate."
........................................

A gross profit margin of 0.33:1 means that for every dollar in sales, you have 33 cents to cover your basic operating costs and profit.

Some business owners will use an anticipated gross profit margin to help them price their products. While other factors -- such as competition and demand -- may play into pricing decisions, a gross profit margin is a good starting point for product pricing. For example, if a product costs $8 to produce, and your gross profit margin is 20 percent, you can calculate your pricing by dividing your cost by (1-.0.2). In this case, $8 divided by .8 would yield a price of $10.

You can also use your gross profit margin ratio to help you set and monitor sales goals for your company.

Because costs for raw materials, labor and manufacturing expenses all play into your profit margin ratio, a change in this ratio over time could mean it's time to look for new suppliers or review your pricing structure.

Rate Search

Compare local mortgage rates
30 yr fixed average
4.30%
Mortgages
This is the daily overnight average for a 30-year fixed mortgage.
Find the best mortgage rates in your area

Mortgage purchase Mortgage refinance
Mortgage purchase:
Compare local home equity rates
30K FICO-based HELOC average
4.82%
Home equity
This is the daily overnight average for a $30K HELOC.
Find the best home equity rates

Home Equity Loan Home Equity Line of Credit
Select a product:
Compare local CD & investment rates
1 Yr CD average
0.90%
CDs
This is the daily overnight average for the 1-year CD.
Find the best CD & investment rates
Highest nationally available Locally available
Select a product:
Compare checking & savings rates
Interest Checking average
0.48%
Checking
This is the daily overnight average for an interest checking account.
Find the best checking & savings rates
Checking Savings
Select a product:
Compare local auto loan rates
48 Mo New Car average
2.80%
Auto loans
This is the daily overnight average for a 48-month New Car average.
Find the best auto loan rates in your area
Auto purchase Auto refinance
Auto loan products:
Compare credit cards
All Variable average
15.61%
Credit cards
This is the daily overnight average for all variable rate credit cards.
Find the best credit card offers
Select a type:     
Select a Product:
Receive an insurance quote
Insurance
This is the daily overnight average for auto insurance for a 30-year-old couple.
Find the best insurance rates in your area
Enter ZIP code:   
Select a product:
Compare student loan rates
Stafford Loan Rate-in school average
6.80%
Student loans
This is the daily overnight average for a Stafford - in school loan.
Find the best student loan rates
Enter ZIP code:   
Select a product:
          Connect with us
Overnight Averages
Product Rate +/- Last week
30 yr fixed
4.30%
4.32%
15 yr fixed
3.30%
3.32%
5/1 ARM
3.33%
3.37%
View rates in your area:
Product Rate +/- Last week
30K HELOC
4.82%
4.82%
30K Home Equity Loan
5.23%
5.22%
50K HELOC
4.52%
4.52%
View rates in your area:
Product Rate +/- Last week
48 Mo Used Car
2.91%
2.88%
48 Mo New Car
2.80%
2.95%
36 Mo Used Car
3.06%
3.02%
View rates in your area:
Product Yield +/- Last week
6 Mo CD
0.49%
0.49%
1 Yr CD
0.90%
0.88%
5 Yr CD
1.60%
1.66%
Compare rates:
Product Rate
Low Interest Cards 10.91%
Balance Transfer Cards 15.71%
All Variable 15.61%
Compare rates:  
advertisement
advertisement
Partner Center
advertisement

Connect with us