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Profit Margin Calculation

This calculator allows you to easily set a profitable selling price for your products while taking into account the discounts you give to your resellers. Easily save money and increase your profits by selling your products with the minimum of intermediaries.

CHF

%

Retail price: —

%

The reseller pays you: —

pcs

My costs if I take care entirely of the sale of my products.

%

Your selling costs: for example payment fees, marketing costs, the upkeep of your website or a vending machine, staff costs for sales-related tasks, or the time you spend handling orders or customers in store.

Profit Margin Calculator Result

Retail price of the product

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cost of sale

Your gross profit

Profit margin rateof the retail price

You take care of everything
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Mimelis
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Three examples to see how it works

From the workshop to the large estate: pick a case and we'll fill in the calculator for you.

Small business

An artisan soap maker

A bar of soap costs her 3.50 to make. Its recommended retail price is 8.75. She gives a concept store a 40% discount, so it buys the soap from her for 5.25.

What does she really keep on each bar?

  • Cost 3.50
  • Markup 150%
  • Discount 40%
See the example

SME

A chocolate maker with three shops

A box of pralines costs her 9.60, with a recommended price of 24.–. Delicatessens ask for a 40% discount and buy it from her for 14.40.

How much more does she earn per box sold direct?

  • Cost 9.60
  • Markup 150%
  • Discount 40%
See the example

Large company

A wine estate

A bottle costs him 9.–, with a recommended price of 18.–. Wine merchants and supermarkets ask for a 35% discount and buy it from him for 11.70.

Over 1,000 bottles, how much more does he earn selling direct?

  • Cost 9.–
  • Markup 100%
  • Discount 35%
See the example

Do you want to develop an effective pricing strategy for your business? Evaluate your gross margins and your mark-up rates according to your distribution channel.

Compare your gross margins according to your distribution methods and find the effective sales strategy for your business.

The Mimelis Profit Margin Calculator can help you easily establish a selling price for your product that will be profitable for your business.
First, enter the cost of buying your product, then set the margin you want to apply. It will be used to determine the retail price of your product.
Choose the discount you will give to resellers so that they can resell your product to consumers.
You can now start the calculation by clicking on the "Calculate" button. Our tool will calculate from the numbers you have chosen, and thanks to its profit margin calculation formula, the public selling price of your product.
You will then obtain your profit margin and you can compare it according to 3 distribution methods: selling with a reseller, selling your products yourself and selling using Mimelis.
Do you want to go further? To establish the gross margin when you sell your products yourself, our profit margin calculation uses standard costs. You can use your own costs for the calculation by clicking on the "advanced mode" button.

Frequently asked questions

Here you will find answers to the most frequently asked questions about profit margin calculation.

  • What is profit margin?

    Profit margin, also known as profit margin, is used to indicate the profitability of a product, service or business. It is expressed as a percentage: the profit margin rate. This percentage shows how much a company earns each time it sells a product. The higher this percentage, the more profitable the product is for the company.

  • How is gross profit margin calculated?

    The profit margin is the difference between the selling price and the cost price of a product (sum of the purchase, production, marketing and administrative costs). To obtain the profit margin rate, simply divide the margin obtained by the cost price then multiply by 100. The Mimelis profit margin rate calculator performs these different calculations for you. You will be able to quickly obtain your profit margin rate.

  • How does the profit margin calculator work?

    Mimelis' free profit margin calculator allows you to calculate your profit margin rate from the cost of your product and the markup you wish to apply. It is intended for all sellers and it can be used easily without registration.

  • Why is the Mimelis profit margin calculator innovative?

    The Mimelis profit margin calculator allows you to easily calculate your profit margin rate and then compare it to different sales channels. In particular, this calculator allows you to take into account the discount you want to give to resellers for reselling your product. It also allows you to make simulations taking into account the costs related to the sale of your product. You will also be able to see the advantage of making your sales in Switzerland with the help of Mimelis.

  • How much does it cost to use the Profit Margin Calculator?

    The Profit Margin Calculator is a free tool that Mimelis offers to businesses. So you can use it free of charge.

Do you have other questions or want more information? Do not hesitate to contact us.

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