Margin per unit calculator

Calculate the profit margin per unit by inputting your revenue and cost information

Input Parameters

Calculation Results

Calculation Formula

Margin per Unit = Selling Price per Unit - Cost Price per Unit

Where:
Selling Price per Unit: The price at which each unit is sold
Cost Price per Unit: The cost to produce or purchase each unit

Margin per Unit

Margin Percentage

Margin per unit calculator Calculator Usage Guide

Learn how to use the Margin per unit calculator calculator and its working principles

How to use the calculator

  1. Enter the selling price per unit in the first input field (e.g., 25.00)
  2. Enter the cost price per unit in the second input field (e.g., 15.00)
  3. Click the "Calculate" button to compute the margin per unit and margin percentage
  4. The results will show the dollar amount of profit per unit and the percentage margin

Understanding the Results

The calculator provides two key metrics:

  • Margin per Unit ($): This is the direct profit you make for each unit sold, calculated as Selling Price per Unit - Cost Price per Unit
  • Margin Percentage (%): This shows the profit as a percentage of the selling price, calculated as (Margin per Unit / Selling Price per Unit) × 100

Practical Applications

This calculator is useful for:

  • Setting optimal pricing for products
  • Analyzing profitability of different products
  • Making informed business decisions about pricing strategies
  • Tracking performance over time by comparing margin percentages

Note: For more complex business analysis, consider using this calculator as part of a larger business financial analysis framework.