Financial Accounting & Reporting Functions | Profit Margin | Qvinci

 

QuickBooks Dashboard - Profit Margin Calculator

This calculator can help you determine the selling price of your products to achieve a desired profit margin. By entering the wholesale cost, and either the markup or gross margin percentage, we calculate the required selling price and gross margin.

 

Definitions:

·                 Product name:  The name of the product for this entry line.

·                 Wholesale cost:  Your total wholesale cost of the product that you are going to resell.  If you do not buy products wholesale the wholesale cost is the expense to get the product ready for selling.

·                 Markup percent:  The percentage of your wholesale cost that the product's price is increased by to determine the selling price for your customers. For example, if you have a 50% markup on a product with a wholesale cost of $10, your selling price would be $15.00.

·                 Selling price:  This is the price you charge your customers. This amount is always calculated, based on either the entered gross margin percent or markup percent.

·                 Gross margin dollars:  This is the total gross margin, in dollars, for your product. For example, if you have a wholesale cost of $10 and a selling price of $15 dollars, your gross margin is $5.00.

·                 Gross margin percent:  This percentage is the gross profit for your product. For example, if you have a product that has a wholesale cost of $10 and a selling price of $15, your gross margin is 33.33%.

 

How To Use This Model

To use the financial accounting and reporting tool, first type in the name of your Product, the Wholesale Cost, and the Markup Percent.  The calculator does the rest of the calculations.  Then change the wholesale cost and markup percent to know at what amount products should be sold for. 

 

What This Does For You

This calculator shows you the Selling Price as a function of the Wholesale Cost and Markup Percent.  After changes to the Cost and Markup this calculator then shows whether the price can be lowered and a decent profit margin still be made. 

 

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